Monetarists believe that the type of monetary policy that would lead to greater economic stability is
A) a money supply rule.
B) a constant money supply.
C) a counter-cyclical monetary policy.
D) a pro-cyclical monetary policy.
A
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The trade-to-GDP ratio for a nation that had $600 million in exports, $400 million in imports, and GDP of $2,000 million would be
A) 0.1. B) 0.2. C) 0.5. D) -0.1.
For a profit maximizing monopolist, if the MC = 10 and price is set to be 20, then the elasticity at this price is
A) -2. B) -1. C) -0.5. D) 0.
If the government wished to shift aggregate demand to the right, it might:
A. increase government spending. B. increase income taxes. C. pressure the Fed to decrease the money supply. D. Any of these things might cause aggregate demand to shift to the right.
GoodPrice Increase Last YearAmusement park tickets5.0%Bowling balls4.2%Camouflage neckties3.1% Refer to Table 8.1, which gives hypothetical data on price changes for three goods. If the overall rate of inflation in the economy was 3.5%, what happened to the real price of amusement park tickets?
A. The real price of amusement park tickets rose by 8.5%. B. The real price of amusement park tickets fell by 1.5%. C. The real price of amusement park tickets rose by 5.0% D. The real price of amusement park tickets rose by 1.5%.