According to adaptive expectations theory, expansionary monetary and fiscal policies to reduce the unemployment rate are
A) useless in the short run
B) useless in the long run
C) ineffective on the price level
D) none of the above
useless in the long run
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How would a decrease in the price of the feed grains used to feed cattle affect the market for beef?
a. The demand for beef would increase, increasing beef prices. b. The demand for beef would decrease, decreasing beef prices. c. The supply of beef would increase, decreasing beef prices. d. The supply of beef would decrease, increasing beef prices.
Changing reserve requirements is the most important method the Federal Reserve uses to change the supply of money
a. True b. False Indicate whether the statement is true or false
The U.S. government subsidizes the production of ethanol from corn and requires gasoline to contain a specific percentage of ethanol.What are the unintended consequences of this program?I. higher corn prices II. higher prices for cornbread and tortillas, products made from corn III. lower prices for gasoline because corn is a renewable resource
a. II only b. I only c. I and II d. I, II, and III
Assume an economy produces only hamburgers and hot dogs and the base year is 2016. Quantities ProducedPrices?2016201720162017Hamburgers2,0003,000$2$3.00Hot dogs3,0004,000$1$1.50Given the data in the table above, what is the value of nominal GDP in 2017?
A. $ 7,000 B. $10,500 C. $15,000 D. $ 5,000