Expansionary monetary policy enacted during a recession will cause the inflation rate to increase
Indicate whether the statement is true or false
TRUE
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The short run is the time frame
A) during which the quantities of all resources are fixed. B) that is less than a year. C) during which the quantities of some resources are fixed. D) during which the quantities of all resources are variable. E) during which all costs are implicit costs.
Show the effects of a change in the nominal interest rate and a change in real GDP using the demand for money curve
What will be an ideal response?
To ensure that the fundamental identity of national income accounting holds, changes in inventories are
A) treated as part of expenditure. B) treated as part of saving. C) ignored. D) counted as consumption.
Suppose Ford develops a technology enabling its full-size cars to get 150 miles per gallon. If it applies for a patent on that technology and is denied, Ford can expect to
a. still have a monopoly on that technology because Ford has monopoly power in the industry b. sell that technology to a competitor who will reapply for the patent c. be reimbursed for its investment in research by the government because it was the government that denied the patent in the first place d. earn lower profit than they would with the patent e. sell fewer cars in the short run, but more in the long run than its competition