An expansionary monetary policy is most likely to produce an inflationary effect with little impact on output when the economy
A. is near full employment and the aggregate supply curve is horizontal.
B. is near full employment and the aggregate supply curve is vertical.
C. has substantial unemployment and the aggregate supply curve is vertical.
D. has substantial unemployment and the aggregate supply curve is horizontal.
Answer: B
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Which of the following statements best describes high-income economies’ relationship with inflation?
a. The high-income economies appear to have a political consensus to hold inflation low, but not the economic tools to do so. b. The high-income economies appear to have the economic tools to hold inflation low, but not the political consensus to do so. c. The high-income economies appear to have both a political consensus to hold inflation low, and the economic tools to do so. d. The high-income economies do not appear to have a political consensus to hold inflation low, and the economic tools to do so.
The aggregate quantity of goods and services demanded changes as the price level falls because
a. real wealth falls, interest rates rise, and the dollar appreciates. b. real wealth falls, interest rates rise, and the dollar depreciates. c. real wealth rises, interest rates fall, and the dollar appreciates. d. real wealth rises, interest rates fall, and the dollar depreciates.
If there are 10 million people employed, 1 million unemployed, 500,000 discouraged workers, and 400,000 collecting unemployment insurance, there are _____ people in the labor force.
Fill in the blank(s) with the appropriate word(s).
Which of the following is a component of money?
A) bonds B) saving C) income D) stocks E) none of the above