Expansionary monetary policy to prevent real GDP from falling below potential real GDP would cause the inflation rate to be ________ and real GDP to be ________
A) higher; higher B) higher; lower C) lower; lower D) lower; higher
A
You might also like to view...
Opportunity cost is best defined as the value of
A. all of the other possible options that the decision maker could have chosen. B. the alternative which the decision maker would choose if more resources were available. C. what is gained from the alternative which is chosen. D. resources that are given up to attain the alternative that is chosen. E. the next best alternative that the decision forces one to give up.
As the nominal interest rate increases, the opportunity cost of holding money ________ and the quantity of money demanded ________
A) decreases; decreases B) increases; increases C) decreases; increases D) increases; decreases E) increases; does not change because people need money
In the United States, periods of deflation
A) primarily occurred during times of war. B) were virtually nonexistent until after 1980. C) only occurred before the Civil War. D) were relatively common prior to 1930.
If the price of good X increases by 1 percent, then the quantity supplied increases by more than 1 percent. This means
A) supply is elastic. B) supply is unit-elastic. C) supply is inelastic. D) the good has good substitutes.