If the level of current output suddenly falls below the potential level of output, central bankers would:
A. keep the real interest rate constant and focus on only changing the nominal interest rate.
B. raise the real interest rate.
C. lower the real interest rate.
D. attempt to shift the aggregate expenditures curve.
Answer: C
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Which of the following is the best example of a perfectly competitive industry?
A) steel production B) airplane production C) wheat production D) electricity production
The budget of an economy is said to be in deficit when: a. federal outlays exceed revenues
b. federal revenues exceed outlays. c. anticipated inflation rate exceeds its actual rate. d. there is a loss of value of a country's currency with respect to one or more foreign reference currencies. e. anticipated interest rate exceeds its actual rate.
In a small town of 100 people, there are 10 children under 16, 10 retired people, 60 people with full-time jobs, 3 people with part-time jobs, 3 full-time students over 16, and 4 full-time homemakers. The remaining people did not have jobs, but wanted them. How many people are in the labor force of this town?
A. 63 B. 80 C. 60 D. 73
New growth theory supports the idea thatI.economic growth can continue as long as we keep finding new ideas.II.increases in human capital can lead to greater rates of economic growth.
A. I only B. II only C. Both I and II D. Neither I nor II