Stagflation is a situation with high unemployment rates, high inflation rates, and little or no growth in the economy
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to Scenario 14.4. Suppose that a subsidy is implemented on each unit of labor hired. Then the number of workers hired
A) will decrease. B) will increase. C) will not change. D) will change in an indeterminate fashion.
Increases in productivity per person lead to increases in per capita income, which we call:
A. economic growth. B. GDP per capita. C. the GDP deflator. D. the producer productivity index.
If a Federal Reserve Bank wanted to tighten the money supply, it would
a. lower the reserve requirement. b. buy securities in the open market. c. raise the discount rate. d. lower the discount rate.
Excess reserves of banks equal
a. actual reserves minus required reserves. b. actual reserves minus demand deposits. c. assets minus the liabilities of the banks. d. required reserves minus actual reserves.