Refer to Figure 26-7. Suppose the economy is in short-run equilibrium above potential GDP, the unemployment rate is very low, and wages and prices are rising
Using the static AD-AS model in the figure above, the correct Fed policy for this situation would be depicted as a movement from
A) A to B. B) B to C. C) C to D. D) C to B. E) A to E.
D
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If the inflation rate in 2014 was 12.5 percent and the price index for 2012 (the base year) was 100, the price index for 2014 was _____
a. 120.5 b. 121.5 c. 112.5 d. 102.5
A profit-maximizing monopolist will never produce on the elastic segment of its demand curve
Indicate whether the statement is true or false
Other things the same, an increase in the U.S. interest rate causes the quantity of loanable funds supplied to
a. rise because net capital outflow and domestic investment rise. b. rise because national saving rises. c. fall because net capital outflow and domestic investment rise. d. fall because national saving falls.
Economic efficiency entails
A) producing a given amount of output with the most expensive mix of inputs. B) producing a given amount of output with the least number of inputs. C) producing a given amount of output with the most inputs. D) producing a given amount of output with the cheapest mix of inputs.