Increases in the quantity of money can start a ________ inflation, and an increase in government expenditure can start a ________ inflation
A) demand-pull; demand-pull
B) demand-pull; cost-push
C) cost-push; cost-push
D) cost-push; demand-pull
E) None of the above is correct because increases in the quantity of money are necessary to continue an inflation but cannot start an inflation.
A
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Selling government bonds through open market operations allows the Federal Reserve to:
A. decrease money in the Treasury. B. decrease the money supply in the private sector. C. receive discounts on future sales. D. receive a high rate of interest on the bonds.
In the basic aggregate demand - aggregate supply model, an decrease in oil prices will in the run lead to a ______ in real GDP, and ____ in the price level.
Fill in the blank(s) with the appropriate word(s).
Refer to Figure 10.8. Other things equal, a decrease in the nominal interest rate on money would best be represented by
A) a movement from point A to point C. B) a movement from point A to point D. C) a shift from LM1 to LM2. D) a shift from LM2 to LM1.
The effects of unionization on wages in the sectors of the economy that are unionized causes the supply of labor in other sectors of the economy to
a. decrease, raising wages in industries that are not unionized. b. decrease, reducing wages in industries that are not unionized. c. increase, raising wages in industries that are not unionized. d. increase, reducing wages in industries that are not unionized.