At all points to the right of the intersection of the aggregate output (Y) and aggregate expenditures (AE) curves, there will be unplanned inventory accumulation
a. True
b. False
Indicate whether the statement is true or false
True
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A permanent change to a much higher price of gasoline would lead us to expect fewer gas guzzlers on the road, ceteris paribus
a. True b. False Indicate whether the statement is true or false
The fundamental reason to study economics is to study
a. how choices are made. b. how production is determined. c. how countries trade with each other. d. how finances are determined.
Which of the following is a positive macroeconomics statement?
A) The central bank should increase the nation's money supply. B) The increase in the nation's money supply helped push the nation's unemployment rate down in the short run. C) Ford Motor Company's new advertising campaign ended up hurting General Motors' sales. D) The local government ought to spend more on recreational facilities.
When the Fed is acting as fiscal agent for the Treasury, it will
A) buy securities from the Treasury, thereby providing the Treasury with money to pay the government's bills. B) receive and process bids for Treasury securities in preparation for the Treasury's auction of securities. C) serve as a lender of last resort. D) supply the Treasury with paper money whenever the Treasury does not have enough funds to meet its bills. E) supervise the Treasury by examining its books.