The two main tools of macroeconomic policy include monetary policy and fiscal policy. Briefly describe the main components of each.
What will be an ideal response?
The two main tools of macroeconomic policy include monetary policy, which involves policies that affect bank lending, interest rates and financial capital markets, and fiscal policy, which involves government spending and taxes.
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The Phillips curve is thought to reflect the relationship between
A) unemployment and inflation. B) the price level and inflation. C) unemployment and real GDP. D) inflation and real GDP.
In economics, what is the difference between the short run and the long run?
What will be an ideal response?
The relationship between quantity supplied and the price of output is such that
A) an increase in quantity will automatically lead to a reduction in price.
B) an increase in price will lead to an increase in quantity supplied.
C) an increase in price will produce an inward shift in the supply curve.
D) quantity will decrease as the number of firms increases.
Because consumption is largely determined by ________ income, consumption is ________ equally distributed than current income.
a. permanent, more b. permanent, less c. transitory, less d. transitory, more