A rising price level should shift the expenditure schedule
A. upward and decrease equilibrium real GDP.
B. downward and increase equilibrium real GDP.
C. downward and decrease equilibrium real GDP.
D. upward and increase equilibrium real GDP.
Answer: C
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According to the Taylor rule, which of the following will lead to a higher nominal federal funds rate?
A) an increase in inflation B) a positive output gap C) a positive inflation gap D) all of the above E) none of the above
Refer to the payoff matrix below. If Best Lights and Bright Lights both know that the above game will be played exactly four times, which of the following will be the outcome of the game in each of the four periods?
A) Set High Price/Set High Price
B) Set Low Price/Set High Price
C) Set High Price/Set Low Price
D) Set Low Price/Set Low Price
Under the bimetallic standard of the 19th century,
a. gold was initially valued at about 15 times that of silver. b. price fluctuations of gold and silver eased the adoption of the system. c. price fluctuations caused hoarding of undervalued coins. d. Both a and b are correct. e. Both a and c are correct.
In 1997, the Justice Department brought a lawsuit against ________ because its growing market power had enabled the company to crush competitors, eliminate competition and innovation.
A. Microsoft B. Walt Disney C. Exxon D. Standard Oil