In the graph showing an increase in the growth of the money supply, expansionary policy moves the inflation rate up the short-run Phillips curve by an increase of ______.
a. 1 percentage point
b. 3 percentage points
c. 5 percentage points
d. 6 percentage points
b. 3 percentage points
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
The Federal Reserve System regulates the money supply primarily by
A. controlling the production of coins at the U.S. mint. B. altering the reserve requirements of commercial banks and thereby the ability of banks to make loans. C. restricting the issuance of Federal Reserve Notes because paper money is the largest portion of the money supply. D. altering the reserves of commercial banks, largely through sales and purchases of government bonds.
From 1970 to 2006, data representing average real income for U.S. households indicates that the rich have ________ and the poor have ________
A) gotten richer; gotten poorer B) gotten richer; also gotten richer C) gotten richer; gotten neither richer nor poorer D) gotten poorer; also gotten poorer
A single-price monopolist is inefficient because
A) MR = MC. B) P > ATC. C) it creates a deadweight loss. D) it increases producer surplus.