The short run sequence of events following an unanticipated shift to a more expansionary monetary policy would be
a. lower interest rates, decrease in aggregate demand, and a reduction in output.
b. lower interest rates, increase in aggregate demand, and an expansion in output.
c. higher interest rates, decrease in aggregate demand, and a reduction in output.
d. higher interest rates, increase in aggregate demand, and an expansion in output.
B
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Suppose that the total production of an economy consists of 10 oranges and 5 candy bars, each orange sells for $0.20, and each candy bar sells for $1.00. Which expression of the output of this economy is most consistent with the concept of GDP?
A. This economy produces two-thirds oranges and one-third candy bars. B. This economy produces food valued at $1.20. C. This economy produces $7.00 worth of food. D. This economy produces 15 food items.
Given the scenario described, if the market price of hammers decreased from $15 to $10:
Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13. A. total producer surplus falls by $5. B. producer surplus for each producer falls by $5. C. Bob's Hardware no longer sells hammers. D. total producer surplus falls by $15.
The lack of progress in reducing the poverty rate since the early 1970s is most closely related with which of the following factors?
a. increasing income inequality b. a reduction in the poverty line c. rapid economic growth d. a reduction in international trade
The Dodd-Frank bill created an agency to monitor markets for asset price bubbles and the buildup of systemic risk. This agency is called the
A) Resolution Trust Authority. B) Board of Governors. C) Financial Stability Oversight Council. D) Macroprudential Supervisory Agency.