Which of the following is an example of a Federal Reserve operating target?
A) Federal funds rate
B) Unemployment rate
C) Non-financial debt
D) M2
A
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Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
The income-expenditure model is best used for short-run analysis of economic fluctuations
Indicate whether the statement is true or false
When Stanley has an income of $1,000 . he consumes 30 units of good A and 50 units of good B. After Stanley's income increases to $1,500, he consumes 60 units of good A and 45 units of good B. Which of the following statements is correct?
a. Both goods A and B are normal goods. b. Both goods A and B are inferior goods. c. Good A is a normal good, and good B is an inferior good. d. Good A is an inferior good, and good B is a normal good.
You've set aside $500 a month to go golfing. If each round costs $55, how many rounds of golf can you play each month?
A. 2 rounds B. 11 rounds C. 10 rounds D. 9 rounds