Which of the following is a monetary policy goal?
i. keeping the inflation rate low
ii. attaining maximum employment
iii. keeping the long-term interest rate at a moderate level
A) i only B) ii only C) iii only D) i and iii E) i, ii, and iii
E
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A specific tax on sellers will
A) shift the demand curve to the right. B) shift the demand curve to the left. C) shift the supply curve to the right. D) shift the supply curve to the left.
Suppose there are 100 million in the labor force, and 6 million unemployed people. During the next month, 200,000 people lose their jobs and 300,000 find jobs. The new total of employed is ________ and the new unemployment rate is ________
A) 100.1 million; 5.8 percent B) 100 million; 6.1 percent C) 94.1 million; 5.9 percent D) 93.9 million; 6.1 percent
How might fiscal policy be used to correct a recessionary gap?
A. Taxes would be cut to stimulate aggregate demand. B. The exchange rate would be adjusted to encourage imports. C. The interest rate would be adjusted to encourage saving. D. The exchange rate would be adjusted to discourage imports.
Henry George claimed that land-rent taxes would not impair economic efficiency because:
A. They do not result in a change in the amount of land available B. Landowners are, as a group, financially secure and able to pay the taxes C. The supply of land is infinitely elastic D. Rents represent a small part of income paid to American resource suppliers, so taxes on wages and salaries are more disruptive