The typical results of an adverse supply shock are lower output and higher inflation.
Answer the following statement true (T) or false (F)
True
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Money cannot serve as a medium of exchange unless it also serves as a store of value. Is this statement true or false? Explain
What will be an ideal response?
What causes movement from point A to point B on the curve?
a. an increase in the price level from PL1 to PL2
b. a rightward shift in the short-run aggregate supply curve
c. an increase in real GDP from RGDP2 to RGDP1
d. a decrease in the price level from PL2 to PL1
Which of the following was the result of the Federal Reserve’s purchase of mortgage-backed securities in 2009?
A. MBS interest rates declined, home mortgage rates declined, and the Fed turned a profit on these operations. B. MBS interest rates declined, home mortgage rates declined, but the Fed had a loss on these operations. C. MBS interest rates increased, home mortgage rates declined, and the Fed turned a profit on these operations. D. MBS interest rates increased, home mortgage rates increased, but the Fed had a loss on these operations.
We refer to the whole class of goods that firms will ________ in a completely unregulated market economy as public goods.
A. underproduce B. overproduce C. not produce at all D. Both A and C are correct.