During a demand-pull inflation, if the Fed tries to maintain a level of real GDP above potential GDP...
What will be an ideal response?
the aggregate demand curve will shift rightward continuously and short-run aggregate supply will shift leftward continuously
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The table above shows the situation in the gasoline market in Tulsa, Oklahoma. If the price of a gallon of gasoline is $3.73, then
A) there is a surplus of gasoline in Tulsa. B) there is a shortage of gasoline in Tulsa. C) the gasoline market in Tulsa is in equilibrium. D) without more information we cannot determine if there is a surplus, a shortage, or an equilibrium in the gasoline market in Tulsa. E) there is neither a surplus nor a shortage, but the market is NOT in equilibrium.
The above table has the demand and supply schedules for money. Real GDP increases and, as a result, the demand for money increases by $0.1 trillion at each level of the nominal interest rate. The new equilibrium interest rate is
A) 5 percent. B) 2 percent. C) 10 percent. D) 3 percent. E) 7 percent.
Some of the earnings gap between ethnic groups might be explained by differences in the quality of schooling
Indicate whether the statement is true or false
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What will be an ideal response?