In the figure above, assume that output is $10.5 trillion, while potential output is $12 trillion
If autonomous monetary policy (alone) is used to bring output to $12 trillion, then the figure implies that the real interest rate will be ________ percent, and the inflation rate will be one percent. A) 1.5
B) zero
C) one
D) 0.5
E) 2.5
B
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In the antebellum economy of the South, what was not produced for subsistence consumption?
(a) Corn (b) Cotton (c) Cattle (d) All of the above
How does a budget deficit lead to a trade deficit?
a. The trade deficit triggers higher interest rates, which increase the budget deficit. b. The budget deficit leads to higher interest rates and exchange rates, which shrink net exports. c. The trade deficit causes lower interest rates, which leads to economic recession and a budget deficit. d. The budget deficit causes lower exchange rates, which decrease net exports.
Who once said that taxes are the price we pay for a civilized society?
a. Milton Friedman b. Theodore Roosevelt c. Arthur Laffer d. Oliver Wendell Holmes, Jr.
Public school teachers are known to have low wages. Which of the following would push the teachers' wages lower?
a. Public school teacher jobs are difficult. b. Public school teachers are required to be college graduates. c. Public school teachers belong to a union. d. Teaching in a public school has a high element of personal satisfaction.