Which of the following is correct? In the 1990's
a. the Fed maintained low inflation because it had to follow a policy rule.
b. the Fed maintained low inflation even without being required to follow a policy rule.
c. the Fed was not required to follow a policy rule and let inflation move higher.
d. the Fed was required to follow a policy rule, but it provided the Fed enough discretion that inflation moved higher.
b
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Which of the following was not one of Malthus assumptions?
a. stable prices b. production with only two inputs - land and labor c. a fixed supply of land d. human desire to increase the population
A change on the extensive margin occurs when
A. people who were employed decide to decrease their hours worked. B. people drop out of the labor force after being unemployed. C. people who were unemployed decide to take jobs. D. people who were employed decide to increase their hours worked.
Refer to the graph below, which shows the supply and demand for British pounds. D1 and S1 represent the initial demand and supply curves. What will be the new equilibrium point as indicated in the graph if there is an increase in consumer spending by the British for American products and a decrease in consumer spending by Americans for British products?
A. A
B. C
C. H
D. J
Why is the Big Mac a good indicator of purchasing power parity?
What will be an ideal response?