In the absence of rational expectations, an expansionary monetary policy should in the short run
A. increase the rate of unemployment.
B. increase real Gross Domestic Product (GDP) and the price level.
C. shift the aggregate supply function.
D. generate stagflation.
Answer: B
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The internet has changed how people shop for clothes, electronics, and other goods. Because of online shopping, many retailers have closed or shut down. How has this affected goods like clothes?
A. The supply of goods like clothes will decrease. B. The demand for goods like clothes will increase. C. The supply of goods like clothes will increase. D. The demand for goods like clothes will decrease.
When a specialized worker gains insights into a particular task that leads to better production methods, this is called
A) repetition. B) specialization. C) continuity. D) innovation.
Given the scenario described, if the market price of hammers decreased from $17 to $12:
Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13. A. producer participation in the market would increase. B. producer participation in the market would decrease. C. producer participation in the market would not be affected. D. total producer surplus would remain unchanged.
Which of the following is an example of a stock variable?
a. The amount of cereal in a person's pantry b. The amount of cereal a person buys each week c. The amount of cereal a child consumes each month d. The amount of cereal produced each day e. None of these are stock variables