If a contractionary monetary policy is adopted, ________
A) the real interest rate will fall B) real output will increase
C) the price level will fall D) the demand for labor will increase
C
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The main goal of monetary policy for recent Fed Chairmen has been to maintain high employment in labor markets
Indicate whether the statement is true or false
The General Agreement on ___________ and Trade (GATT) was established to provide a forum in which nations could come together to negotiate reductions in tariffs and other barriers to trade.
a. Travel b. Taxes c. Tariffs d. Transfers
Shel and Fran are neighbors. They work at the same firm and hold the same title. Shel finds that when Fran's consumption rises, Shel feels worse off. Fran feels the same way about Shel's consumption. Suppose the firm that employs both Fran and Shel begins to offer one hour of overtime at 1.5 times their base hourly wage. It is likely that:
A. Fran will work more but not Shel. B. both Fran and Shel will work more. C. Shel will work more but not Fran. D. neither Fran nor Shel will work more.
In the aggregate demand-aggregate supply model in the short run, a decrease in the money supply is likely to cause a(n) _____
Fill in the blank(s) with the appropriate word(s).