_________ inflation can be explained by an ________ shift in the aggregate _________ curve.
A. Demand-pull, leftward, demand
B. Cost-push, rightward, supply
C. Demand-pull, leftward, supply
D. Cost-push, rightward, supply
Answer: D
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Exchange-rate targeting allows a central bank to ________, thus this will ________ the probability of policy developing a time-inconsistency problem
A) be governed by a policy rule; decrease B) follow discretionary policy; decrease C) be governed by a policy rule; increase D) follow discretionary policy; increase
Which of the following men has NOT served as Chairman of the Board of Governors?
A) Milton Friedman B) Arthur Burns C) Paul Volcker D) Alan Greenspan
In the new Keynesian models,
a. imperfect competition comes is the result of optimizing behavior by individuals. b. perfect competition is assumed with respect to the product market c. a natural monopoly is presumed for the product market. d. both a and c. d. None of the above
Suppose Bright Orange is large firm that grows and harvests oranges. Each orange yields 2 ounces of orange juice and exactly one orange peel. Bright Orange sells the orange juice to juice distributors and the orange peels to fragrance companies. If the market for oranges is perfectly competitive, Bright Orange will determine its profit-maximizing output level based on ________.
A) the market price of an orange B) the market price of an ounce of orange juice C) the market price of two ounces of orange juice D) the market price of an orange peel