If a passive approach is followed in closing an expansionary gap, _____
a. restrictive fiscal policy would be used
b. restrictive monetary policy would be used
c. the short-run aggregate supply curve would shift to the right
d. the price level would decrease in the long run
e. an economy would experience inflationary pressure
e
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Suppose that over a period of years the country of Quasiland switched from being an agriculturally-based economy to a technologically-based economy. As a result, many people lost jobs because they lacked the correct skills
As they search for new jobs, these people are part of A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) discouraged workers.
Monetarists tend to think that the aggregate demand curve is
A) stable. B) vertical. C) horizontal. D) sensitive to changes in investment spending.
Between late 2007 and 2012, the Fed's balance sheet:
A) remained about the same B) more than doubled C) more than tripled D) rose tenfold
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point E necessarily represents
A. only motorcycles being produced. B. overallocation of resources. C. an impossible production point. D. technological advancement.