Refer to Figure 15-7. Suppose the Fed lowers its target for the federal funds rate. Using the static AD-AS model in the figure above, this situation would be depicted as a movement from
A) B to A. B) A to B. C) C to D. D) E to A. E) C to B.
B
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The tendency to deviate from sound long-run plans in the short-run is known as ________
A) the failure of adaptive expectations B) the failure of rational expectations C) the time inconsistency problem D) the NIMBY, or not in my backyard problem
Which of the following is not part of the Federal Reserve System?
a. Treasury Department b. District Federal Reserve Banks c. Federal Open Market Committee d. Branches of District Federal Reserve Banks e. Board of Governors
Workers in American industry are more productive than those in many other countries because of
a. the large supplies of machinery available. b. abundant natural resources. c. technical know-how. d. All of the above contribute to American worker productivity.
Political advocacy:
A. and political engagement are not affected by the free-rider problem. B. can suffer from the free-rider problem, but political engagement does not. C. is not affected by the free-rider problem, but political engagement is. D. and political engagement can suffer from the free-rider problem.