The AS/AD model implies that monetary policy should be used to:
A. keep the price level constant.
B. keep the money supply growing at a constant rate.
C. keep the interest rate constant.
D. make adjustments so that savings equal investment.
Answer: D
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Refer to Table 16.2. Real GDP for Fredonia for 2016 using 2015 as the base year equals
A) $2,750. B) $3,500. C) $4,325. D) $5,500.
Refer to Scenario 1 . If you start the course in such a way that each exam score is better than your previous average what should happen to your average score?
What would happen to your average if it was below your previous exam score? Explain.
An improvement in technology that allows workers to process twice as many insurance forms in an hour than before will cause
a. more labor to be employed because its marginal revenue product has fallen b. an increase in insurance premiums c. fewer workers to be employed because their marginal revenue product has decreased d. more workers to be employed because their marginal revenue product has increased e. fewer workers to be employed because their marginal revenue product has increased
Which of the following statements is true?
a. Income distribution in the United States has gotten progressively more unequal since 1929. b. The Lorenz curve indicates the degree of discrimination in an economy. c. The Lorenz curve indicates the degree of income inequality in an economy. d. The richest 5% of Americans earn approximately half of the nation's income. e. All of these.