The Fed decreases money supply. In this case, the time lag problem of monetary policy may
A. decrease the velocity of money in the short run.
B. increase the velocity of money in the short run.
C. increase real GDP in the short run.
D. none of the above
Answer: B
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In the long run, the real interest rate is 3 percent, real GDP grows at 4 percent, velocity is constant, and the quantity of money grows at 8 percent. The nominal interest rate is
A) 7 percent. B) 12 percent. C) 10 percent. D) 8 percent. E) 6 percent.
In a typical year, ________ of new jobs are created by small firms
A) less than 5 percent B) 10 percent C) 40 percent D) 75 percent
Insurers reduce the problem of moral hazard by limiting coverage of open-ended treatments like psychotherapy or fully elective treatments like some cosmetic surgeries
Indicate whether the statement is true or false
Carol is a coal miner who just got laid off when the last coal mine in the area was shut down. She has looked everywhere for another job as a miner, but cannot find one. Given that Carol is unlikely to find another job as a miner, she would be considered:
A. real-wage unemployed. B. Carol is a discouraged worker. C. structurally unemployed. D. frictionally unemployed.