Consider an adverse supply shock in the RBC model. The central bank knows that the pre-shock level of output
A) can be maintained only by reducing the money supply.
B) can be maintained only by holding constant the money supply,
C) can be maintained only by increasing the money supply.
D) cannot be maintained by any monetary policy.
D
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Before-tax incomes are a better measure of income as compared to after-tax incomes
a. True b. False Indicate whether the statement is true or false
If speculators bid up the value of the dollar in the market for foreign-currency exchange, U.S. aggregate demand would shift to the left
a. True b. False Indicate whether the statement is true or false
Compared to their initial positions at points A and B, as a result of complete specialization and trade, the output of the two countries added together in Figure 35.1 would result in an increase in
A. Neither DVD players nor motorcycles. B. Motorcycles only. C. DVD players only. D. Both DVD players and motorcycles.
When 5 units of labor are employed, total product is 10 units; when 6 units of labor are employed, total product is 11 units of output. If the price of output is $5 per unit, what is the marginal revenue product of the 6th unit of labor?
A. $5 B. $55 C. $15 D. $10