A favorable supply shock causes the price level to
a. rise. To counter this a central bank would increase the money supply.
b. rise. To counter this a central bank would decrease the money supply.
c. fall. To counter this a central bank would increase the money supply.
d. fall. To counter this a central bank would decrease the money supply.
c
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Real GDP is $700 billion, average hours worked per week is 42 and aggregate hours 150 billion hours. What is the economy's labor productivity?
A) $1.80 per hour B) $3.75 per hour C) $16.67 per hour D) $46.67 per hour E) $4.50 per hour
The table above shows techniques that can be used to produce 100 shirts. If the price of an hour of labor is $20 and the price of a unit of capital is $8, then the economically efficient technique is
A) W. B) X. C) Y. D) Z.
The Celler-Kefauver Act of 1950 amended the:
a. Sherman Act b. Clayton Act. c. Federal Trade Commission Act. d. Wagner Act.
In the best case scenario, what is the Fed's response to a negative demand shock?
A. The Fed will decrease the growth rate of the money supply to offset the negative demand shock. B. The Fed will increase the growth rate of the money supply to offset the negative demand shock. C. The Fed will increase government spending to offset the negative demand shock. D. The Fed will decrease government spending to offset the negative demand shock.