Other things held constant, when the general price level changes:
a. we move along the aggregate demand curve.
b. we shift the aggregate demand curve to the right.
c. we shift the aggregate demand curve to the left.
d. we shift the aggregate supply curve to the right.
e. we shift the aggregate demand curve to the left.
a
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Suppose we observe the following sequence of production and exchange: sand is used to make silicon; silicon is used to make silicon chips; silicon chips are used to make computers; computers are sold to retailers; retailers sell those computers to
consumers. Which represents the purchase of a final good? A) The retailer's purchase of computers B) The consumer's purchase of computers C) Both A and B above. D) None of the above.
An expansionary monetary policy increases net exports by ________ interest rates and ________ the value of the dollar
A) lowering nominal; decreasing B) lowering real; decreasing C) raising nominal; increasing D) raising real; increasing
Which of the following is NOT a responsibility of the Board of Governors?
A) approving bank mergers B) determining permissible activities for bank holding companies C) carrying out open market operations D) setting the salaries of the presidents and officers of district banks
Open Market operations consist mainly of ________
A) the government buying and selling private securities in the open market B) the Fed buying and selling government securities in the open market C) the government selling its own securities in the open market D) the Fed setting rates for securities traded in the open market E) none of the above