Contractionary monetary policy involves actions that:
A. reduce the money supply in order to increase aggregate demand.
B. increase the money supply in order to increase aggregate demand.
C. reduce the money supply in order to decrease aggregate demand.
D. increase the money supply in order to decrease aggregate demand.
Answer: C
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A) India B) the United States C) Japan D) Sweden
In the classical model, an increasing demand for labor will
a. cause an expansion with higher employment and a higher real wage. b. cause a shortage of labor because the labor market always clears. c. cause a recession with lower employment and a lower real wage. d. cause a recession because wages are fixed in the short run. e. cause an expansion with lower employment and a higher real wage.
Enforcement of antitrust laws is the responsibility of
a. only the Department of Justice b. only the Federal Trade Commission c. only the Antitrust Division d. both the Justice Department and the Federal Trade Commission e. the President
Which of the following is best characterized as a public good?
A. a public library B. primary education C. police protection D. a church