Henry Ford paid his workers $5 a day in 1914, when the CPI was 10 . Today, with the price index at 177, the $5 a day is worth $88.50
a. True
b. False
Indicate whether the statement is true or false
True
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A shortage occurs when the market price is lower than the equilibrium price
Indicate whether the statement is true or false
In the long-run production function, all of the inputs to the production process are allowed to vary
Indicate whether the statement is true or false
On October 6, 1979, the Federal Reserve abandoned the strategy of targeting the Federal funds rate and focused on target ranges for growth in the monetary aggregates. Since that time, the Federal Reserve
a. has never deviated from that strategy. b. gave up on interest rate targeting. c. deviated from target ranges for growth in the monetary aggregates when inflation and unemployment were high. d. None of the above
The text discusses the projected increases in the claims on the economy by entitlement programs between the mid 1990s and 2035 . It argues that
a. the projected growth of Medicare claims far outstrips that of Social Security b. as a percentage of GDP, both Medicare costs and Social Security costs will fall c. age and health-care demands are related with the majority of claimants being the young d. the rate of growth of Social Security payments will be higher than the rates for either Medicare and Medicaid e. Social Security and Medicare costs will remain at about the same percent of GDP