Over time, aggregate demand and aggregate supply grow by the same amount
a. True
b. False
Indicate whether the statement is true or false
False
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Refer to Figure 4-5. Suppose that instead of a price ceiling, the government imposed a price floor of R1. What area represents the deadweight loss after the imposition of the price floor?
A) C + E + J + H B) G + H C) J + H D) C + E
Unconventional policy tools are useful when:
A. conventional policy tools result in shifts in the economy that are too large. B. restrictive monetary policy is necessary. C. lowering the target interest rate to zero is not sufficient to stimulate the economy. D. conventional policy tools support only growth in the economy.
In the 1970s and 1980s our productivity
A. increased at an increasing rate. B. Increased at a decreasing rate. C. Stayed about the same. D. decreased.
The Federal Reserve makes decisions regarding ________ policy while Congress makes decisions regarding ________ policy.
A. fiscal; monetary B. structural; fiscal C. monetary; fiscal D. fiscal; structural