Under the assumption of rational expectations, real GDP is determined by
A. the economy's aggregate demand curve.
B. a combination of monetary and fiscal policy.
C. monetary policy but not by fiscal policy.
D. the long-run aggregate supply curve.
Answer: D
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Use the following graph for a competitive market to answer the question below.
A black market where the price is $2.00 could result from a price
A. ceiling set at $2.50. B. floor set at $2.00. C. floor set at $1.50. D. ceiling set at $1.50.
The unemployment rate tells us
A) the fraction of people who want to be working but are not. B) the fraction of people who are not working and do not want to be working. C) the fraction of people who are not working and have quit looking for jobs. D) all of the above
If there is no change in the quantity of currency, the purchase of $100 million of Treasury securities by the Federal Reserve will cause reserves at banks to
A) decrease by $100 million. B) increase by $100 million. C) decrease by less than $100 million. D) increase by less than $100 million.
Gross Domestic Product (GDP) per capita is
a. GDP in current dollars b. GDP adjusted for inflation c. GDP per person d. GDP per dollar spent e. GDP per day