Assuming all else equal, if the Fed is expected to adopt a contractionary monetary policy, ________
A) labor demand will increase B) inflation expectations will increase
C) the long-run real interest rate will increase D) labor supply will increase
C
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In a production possibilities frontier graph, the cost of producing more units of a good is measured by the
A) dollar value of the additional output. B) area in the arc between the PPF and a straight line drawn between the starting point and the ending point. C) dollar value of the resources used to produce the good. D) amount of the other good or service that must be forgone. E) None of the above answers is correct.
What would happen to the planned investment function if business taxes were increased?
A) It would shift to the right. B) It would shift to the left. C) It would shift upward. D) There would be no change.
Assume that the MPC is 0.75, and investment spending rises by $25 billion. How much will real GDP change?
A. $25 billion B. $75 billion C. $100 billion D. $175 billion
High economic growth of a country refers to
A. a large increase in per capita real Gross Domestic Product (GDP). B. a high level of real Gross Domestic Product (GDP). C. a large increase in the values of natural resources. D. a high level of per capita real Gross Domestic Product (GDP).