The widespread decline in the volatility of many macroeconomic variables after 1984 led economists to term this period the
A) Great Moderation.
B) Low Volatility Era.
C) Steady State.
D) Long Boom.
A
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A nationally chartered bank is a commercial bank that receives its charter from the Comptroller of the Currency and is subject to both federal law and the laws of the state in which it operates
Indicate whether the statement is true or false
Economic efficiency is defined in the text as
a. the maximum production of consumption goods b. the maximum production of capital goods c. a balanced production of consumption and capital goods d. a maximum set of resources e. the absence of underemployment or unemployment
In the aggregate demand/aggregate supply model, when the output of an economy is less than its long-run potential, the economy will experience
a. declining real wages and interest rates that will stimulate employment and real output. b. rising interest rates that will stimulate aggregate demand and restore full employment. c. a budget surplus that will stimulate demand and, thereby, help restore full employment. d. rising real wages and real interest rates that will restore equilibrium at a higher price level.
Refer to the graph above. If the initial equilibrium interest rate was 5 percent and the money supply increased by $100 billion, then the new interest rate would be:
1 percent 2 percent 3 percent 4 percent