In macroeconomics, game theory focuses on the strategic interactions between which of the following groups of agents?
A) individuals; firms
B) individuals and firms; policy makers
C) policy makers; economic forecasters
D) individuals and firms; economic forecasters
B
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If a person withdraws $500 from his/her checking account and holds it as currency, then M1 will ________ and M2 will ________
A) not change; increase B) not change; not change C) decrease; increase D) increase; decrease E) decrease: decrease
The demand for microwaves in a certain country is given by: D = 8,000 - 30P, where P is the price of a microwave. Supply by domestic microwave producers is: S = 4,000 + 10P. If this economy opens to trade while the world price of a microwave is $50, and the government imposes a tariff of $30 per microwave, then the domestic quantity demanded will be ________ microwaves.
A. 5,600 B. 5,000 C. 4,500 D. 4,000
Answer the following statements true (T) or false (F)
1) Productivity growth was greater between 1973 and 1995 than between 1995 and 2012. 2) The economy of 1995-2012 was characterized by greater productivity growth and greater economic growth than in the immediately preceding two decades. 3) Because of the recent rise in the average rate of productivity growth, the business cycle is dead. 4) Critics of economic growth say studies show that people are not interested in achieving higher standards of living.
If real GDP is 2% below potential GDP, and the inflation rate is 1%, then according to the Taylor rule, the Fed should make the real federal funds rate:
A. Decrease by 1.5% B. Decrease by 3% C. Increase by 3% D. Decrease by 1%