From an initial long-run macroeconomic equilibrium, if the Federal Reserve anticipated that next year aggregate demand would grow significantly slower than long-run aggregate supply, then the Federal Reserve would most likely
A) decrease interest rates. B) decrease income tax rates.
C) increase interest rates. D) increase income tax rates.
A
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Give a specific example that shows clearly how the System of National Accounts endorsed by the United Nations fails to properly capture activity that harms the environment. Now, suggest a way to quantitatively correct the flaw in the particular case that you describe in part (a).
What will be an ideal response?
Human resources that perform the functions of organizing, managing, and assembling the other resources are called
A) physical capital. B) venture capital. C) entrepreneurship. D) productive capital.
According to the rational expectations hypothesis, the occurrence of unemployment is due to
A. downwardly rigid wages. B. imperfect information. C. unpredictable shocks. D. a deficient level of aggregate demand.
Which would be considered an investment according to economists?
A. The purchase of newly issued shares of stock in Microsoft. B. The sale of government bonds by the nation's central bank. C. The construction of a new computer chip factory by Intel. D. The purchase of shares of stock by Fidelity, a mutual fund company.