If the Fed tries to lower the unemployment rate so it is lower than the natural unemployment rate, in the long run the SRPC ________ and the LRPC ________
A) shifts downward; shifts leftward
B) does not change; shifts rightward
C) shifts upward; does not change
D) shifts downward; does not change
E) does not change; does not change
C
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The narrowest official definition of the money supply is
A) M1. B) M2. C) M3. D) L.
How do economists measure the consumption of a good?
(A) The amount of a good that is bought for a specific amount of money. (B) The amount of money spent to buy a good. (C) The amount of a good that is bought. (D) The amount of a good that is actually used rather than bought.
Ideally, a free trade policy should be accompanied by
A. a public education program to make the benefits known. B. open borders and amnesty for all undocumented workers. C. programs to ensure no one loses a job as a result of foreign competition. D. programs to assist workers who lose their jobs to foreign competition.
The role of government in fostering economic growth in DVCs has been criticized because:
A. Most governments operate as dictatorships B. There is often poor administration and corruption in government C. Government is generally supportive of business at the expense of labor D. Governments have adopted the unpopular method of forced savings to stimulate investment