Refer to Figure 28-6. If firms and workers have rational expectations, an expansionary monetary policy will cause the short-run equilibrium to move from
A) point B to point A.
B) point B to point C.
C) point C to point A.
D) point A to point B.
E) point A to point C.
E
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Most economists agree with which of the following?
A) Passive policymaking is likely to exert sizable long-run effects on real GDP. B) Active policymaking is likely to exert sizable long-run effects on real GDP. C) Active policymaking is unlikely to exert sizable long-run effects on real GDP. D) none of the above
The dominant school of economic thought from the 1930s into the 1960s was
A. the classical school. B. the Keynesians. C. the monetarists. D. supply-side economists.
Which diagram in Figure 9.4 shows what happens to investment as the economy enters a recession, causing both business expectations to collapse and saving to increase further, thus causing banks to lower interest rates?
A. A. B. B. C. C. D. D.
In the above figure, the opportunity cost of moving from point D to point E is
A. 55 guitars. B. 100 guitars. C. 100 ukuleles. D. 75 guitars.