Based on the graph showing an unanticipated expansionary policy, the short-run effects of an unanticipated expansionary policy are ______.
a. higher unemployment and lower prices
b. higher output, prices, and employment
c. lower output, prices, and employment
d. lower output and unchanged prices
b. higher output, prices, and employment
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Which of the following is likely to be a characteristic of a developing economy?
A. The export of only manufactured goods The efficient use of labor B. A high rate of economic growth C. A low rate of growth of population D. A high rate of illiteracy
The Taylor rule
A) is a rule stating that money should grow at a constant rate. B) is not considered to be a practical policy rule for central banks to follow. C) dictates that the central bank's target interest rate be responsive to real economic activity and to inflation. D) dictates that the nominal interest rate stay constant in the long run.
According to the equation of exchange, if real GDP is $2 trillion and the money supply is $0.5 trillion, the velocity of money: a. must be 4
b. must be 1/4. c. must be 4 trillion. d. must be 1/4 trillion. e. cannot be determined unless we know the price level.
People who are currently not working but are actively looking for work are officially classified as:
A. unemployed and in the labor force. B. unemployed and out of the labor force. C. employed and in the labor force. D. employed and out of the labor force.