Suppose that the economy is producing below potential GDP and the Fed implements the correct change in monetary policy, but not until after the economy has passed the trough of the recession. Then
A) the Fed's contractionary policy may result in too large of a decrease in GDP.
B) the Fed's contractionary policy may result in too small of a decrease in GDP.
C) the Fed's expansionary policy may result in too small of a decrease in GDP.
D) the Fed's expansionary policy may result in too large of an increase in GDP.
Answer: D
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Refer to Table 11-1. Based on the table above, which country has a higher standard of living and why?
A) Sweden has a higher standard of living because their GDP per capita is higher. B) Sweden has a higher standard of living because their GDP is higher. C) Ireland has a higher standard of living because their GDP per capita is higher. D) Ireland has a higher standard of living because growth in GDP is greater in Ireland than in Sweden.
Supply-side inflation is the rise in price level caused by slow growth (or decline) of aggregate supply.
Answer the following statement true (T) or false (F)
Recall the Application about the value of trees in residential neighborhoods to answer the following question(s).Recall the Application. The benefits from planting trees in residential neighborhoods, including improved air quality and aesthetics, go to the property owner as well as the neighbors. This implies that trees provide:
A. only private benefits. B. only social benefits. C. both private and social benefits. D. only public benefits, but not private or social benefits.
Jacqueline has a Ph.D. in economics. She has turned down many job offers because she eventually hopes to teach at one of the top ten universities in her field. The type of unemployment she is experiencing is: a. frictional unemployment. b. structural unemployment. c. seasonal unemployment. d. cyclical unemployment
e. underemployment.