In the long run, if the Fed decreases the rate at which it increases the money supply,
a. inflation and unemployment will be higher.
b. inflation will be higher and unemployment will be lower.
c. inflation will be lower and unemployment will be higher.
d. None of the above is correct.
d
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Terri is enrolled in her first economics course. She is required to give a presentation about the circular flow. Which of the following statements should she include in her presentation?
A) Households choose the amount of the factors of production to provide the firms. B) Firms choose the amount of the factors of production to provide households. C) Households receive wages for the amount of entrepreneurship they provide firms. D) Firms pay wages for the amount of entrepreneurship they provide households. E) The flows of goods and services and payments for the goods and services flow in the same direction.
Which of the following statements is TRUE about the relationship between high birthrates and real GDP growth?
A) High birthrates in countries with little economic freedom will lead to higher labor force participation rates that in turn lead to higher growth of real GDP. B) High birthrates reduce per capita incomes, and a lack of economic freedom inhibits real GDP growth. C) There is no relationship between birthrates and real GDP growth. D) The influence that birthrates have on real GDP growth is the same in countries whether or not economic freedom exits.
The official unemployment rate disguises the extent of the unemployment problem because: a. children are not counted as unemployed
b. retired persons are not counted as unemployed. c. full-time students are not counted as unemployed. d. discouraged workers are counted as unemployed. e. people overqualified for their current job are not considered unemployed.
The principal reason why two firms would form a conglomerate merger is to
a. increase the concentration in the industry b. reduce the concentration in the industry c. reduce dependency on buyers and thereby have greater control over price d. diversify assets e. achieve monopoly control