If you assume that the equation of exchange is a dependable economic model, then the Fed can control
A. real GDP.
B. aggregate supply.
C. nominal GDP.
D. economic growth.
Answer: C
You might also like to view...
The primary cause of frictional unemployment is:
a. discouraged workers who give up looking for work. b. fluctuations in aggregate demand. c. the lack of training and marketable qualifications in job seekers. d. inaccurate information about job opportunities.
The effects of borrowing by the federal government would be studied by a microeconomist rather than a macroeconomist
a. True b. False Indicate whether the statement is true or false
Assume the price of a movie is $10. Jenna demands 2 movies per week, Sam demands 3 movies per week, and Jordan demands 8 movies per week. From this information we can conclude that
A) the market quantity demanded at a price of $10 is at least 13 movies per week. B) Jordan is obviously more wealthy than either Sam or Jenna. C) Sam is irrational compared to Jenna or Jordan. D) the movie industry is unprofitable.
An increase in individual income taxes ________ disposable income, which ________ consumption spending
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases