A contractionary monetary policy tends to ____ the United States dollar relative to foreign currencies, and to _____ our balance of trade.
A. raise; help
B. raise; hurt
C. lower; help
D. lower; hurt
B. raise; hurt
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If an increase in the level of money supply leads to a proportionate increase in prices with no effect on real variables ,we say that
A) the Fisher relationship holds. B) money is neutral. C) money is superneutral. D) money is a medium of exchange.
All of the following describe the conflict between divisions EXCEPT
a. Divisional managers are rewarded for the efficiency of their divisions b. managers of profit centers care too little about the effects of their decisions on other divisions c. managers are rewarded only for how well their own division is run d. corporate executives cannot tell when one divisional manager's decision is appropriate or not
A price index number
a. is really a percentage. b. indicates the extent of change in prices over some period of time. c. is always greater than 100 if prices have risen during the period in question. d. All of these.
Answer the following statements true (T) or false (F)
1) The short-run aggregate supply curve is vertical and the long-run aggregate supply curve is horizontal. 2) The short-run aggregate supply curve shifts to the left when nominal wages rise in response to price level increases. 3) In the extended AD-AS model, the long-run aggregate supply curve is vertical. 4) Demand-pull inflation and cost-push inflation are identical concepts because both involve lower unemployment rates and rising prices. 5) The Phillips Curve suggests an inverse relationship between increases in the price level and the level of employment.