If there is an advancement in the technology used to produce a product, what is the likely effect it may have on the supply?
A) The company would not change its manufacturing.
B) It would increase the supply.
C) It would decrease the supply.
D) More people would be needed to produce the product.
B
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When the Fed uses contractionary policy,
A) it causes inflation. B) the price level rises higher than it would if the Fed did not pursue policy. C) it does not change the price level. D) the price level rises less than it would if the Fed did not pursue policy.
In the early 1980s, the disinflation in the United States
a. was accompanied by rapidly growing deficits. b. was costless in terms of output and employment effects. c. was the result of a well-publicized expansionary monetary policy. d. did not result in a severe recession.
A nation practicing mercantilism aims to
a. keep the government out of the economy. b. establish an excess of exports over imports. c. balance imports with exports. d. replace gold and silver with paper money. e. reduce the size of the military sector.
Explain how a decrease in the interest rate will affect investment