________ occurs when the Fed creates a large amount of reserves to buy long-term bonds from banks
A) Budgetary surplus B) Monetary neutrality
C) Money illusion D) Quantitative easing
D
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A rise in the price level causes
A) a reduction in total planned real expenditures. B) an increase in aggregate demand. C) an increase in total planned real expenditures. D) a decrease in aggregate demand.
During the 2007-2009 recession and its aftermath, Okun's law
A) predicted the cyclical unemployment rate more accurately than it did prior to the recession. B) predicted the cyclical unemployment rate at roughly the same rate of accuracy as it did prior to the recession. C) predicted a higher cyclical unemployment rate than was actually experienced in the U.S. economy. D) predicted a lower cyclical unemployment rate than was actually experienced in the U.S. economy.
The parable called the Tragedy of the Commons applies to goods such as
a. fire protection and cable TV. b. tornado sirens and basic research. c. clean air and clean water. d. antipoverty programs and national defense.
Trade restrictions
A. Increase the standard of living for the country as a whole. B. Reduce the number of hours employees must work. C. Reduce the gains from trade for the country as a whole. D. Increase the gains from trade for poor countries.