Refer to Figure 4-10. Suppose that instead of a price ceiling, the government imposed a price floor of R1. What is the quantity of apartments demanded at the new price?
A) Q1 B) 0 C) Q0 D) Q*
A
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In the New Keynesian open economy model, if the exchange rate is fixed
A) fiscal policy and monetary policy are powerless. B) fiscal policy is an effective stabilization tool. C) a change in current total factor productivity increases output. D) monetary policy is an effective stabilization tool.
First-mover advantage is:
A. most advantageous in a prisoner's dilemma-type game. B. very important in one-round sequential games. C. likely to lead to a positive-positive outcome. D. None of these statements is true.
Frictional unemployment refers to unemployment that is a result of: a. a mismatch of skills
b. being out of work 27 weeks or longer. c. job search. d. seasonal decreases in demand for labor. e. a recession in the economy.
Historical note: The demand-pull inflation during the Vietnam War period (late 1960s, early 1970s)
a. resulted mostly from a fall in aggregate supply brought about by the war b. was precipitated by the rapid oil price increases that made military goods more expensive (fuel for tanks and aircraft) c. was sparked by the rise in taxes needed to finance the war d. was caused in part by the increased demand for military goods e. was fueled by a shift to the left of aggregate demand because people in the armed forces were no longer consumers