After an unexpected ________ in the price of oil, the long-run adjustment decreases the price level and ________ the unemployment rate as they return to their original levels
A) increase; increases
B) increase; decreases
C) decrease; increases
D) decrease; decreases
Answer: B
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Use the information in the following table to answer the next question.(1) Interest Rate(2) Investment (billions of dollars)(3) Investment (billions of dollars)4%$100$8059070680607705086040In the table, investment is in billions. Suppose the Fed reduces the interest rate from 6% to 5% at a time when the investment demand declines from that shown by column (2) to that shown by column (3). As a result of these two occurrences, investment will ________.
A. increase by $20 billion B. increase by $10 billion C. decrease by $20 billion D. decrease by $10 billion
When the economy is on the flatter part of the short run aggregate supply curve, efforts to change inflation with monetary policy will be ____ successful and efforts to stimulate the economy will be ____ successful
a. More; more b. More; less c. Less; more d. Less; less
Higher per capita GNP always means higher quality of life
a. True b. False Indicate whether the statement is true or false
As of 2009, what was the last year that U.S. experienced deflation?
A) 1933 B) 1955 C) 1973 D) 1991 E) 2001