If a positive permanent supply shock were to occur, the resulting equilibrium would be a:
A. higher level of output at lower prices.
B. lower level of output and prices.
C. higher level of output and prices.
D. lower level of output at higher prices.
Answer: A
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The table above shows the demand for labor and supply of labor schedules for low-skilled labor. If the labor market is competitive, what is the wage rate of low-skilled labor and what is the quantity of low-skilled labor employed?
A) $6 an hour; 60 hours a day B) $6 an hour; 65 hours a day C) $4 an hour; 70 hours a day D) $4 an hour; 55 hours a day
Which of the following groups are a part of the board of governors of the Federal Reserve?
a. Federal Open Market Operations b. Commercial Banks Presidents Council c. Federal Advisory Committee d. Both A and C are parts of the board of governors of the Federal Reserve
International feedback effects ________________ the impact on the unemployment rate of __________________ monetary policy
A) dampen; only expansionary B) dampen; expansionary and contractionary C) amplify; only contractionary D) amplify; contractionary and expansionary
Firms that participate in regular open market transactions with the Federal Reserve are called
A) Treasury banks. B) Federal Reserve partners. C) primary dealers. D) secondary market banks.