The Monetarist transmission mechanism through which monetary policy affects the price level, real GDP, and employment depends on the:
A. indirect impact of changes on the interest rate.
B. indirect impact of changes on profit expectations.
C. direct impact of changes in fiscal policy on aggregate demand.
D. direct impact of changes in the money supply on aggregate demand.
Answer: D
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The unemployment rate can increase when
A) the proportion of 18-22 year olds that go to college increases. B) the number of unemployed workers increases. C) the number of job finders increases. D) the size of the military increases.
When a tax is imposed on a good for which both demand and supply are very elastic,
a. sellers effectively pay the majority of the tax. b. buyers effectively pay the majority of the tax. c. the tax burden is equally divided between buyers and sellers. d. None of the above is correct; further information would be required to determine how the burden of the tax is distributed between buyers and sellers.
Danica is running for office. A survey showed that most voters in her district describe themselves as conservative but not extremely conservative. Her opponent is running as a moderate. How should Danica portray her opponent to get the most votes and win the election?
a. as a liberal b. as a conservative c. as slightly more conservative than she is d. as slightly less conservative than she is
A patent is an exclusive right to produce and sell a product for how long?
(A) 30 years (B) 40 years (C) 15 years (D) 20 years