Critics of Fed independence argue that
a. monetary policy and fiscal policy are necessarily inconsistent.
b. political control ensures low rates of inflation.
c. monetary policy run by specialists is inherently inflationary.
d. unelected officials are undemocratic.
d
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
Profits are part of the
A) factor services. B) monetary value of output. C) final consumer goods. D) total income.
The quantity of TVs sold is 100 at the unit price $200. Suppose the price elasticity of demand for TVs by the initial value method is 2.0, and you would like to decrease the unit price for TVs to $150. Then the new quantity sold must be:
A. 125. B. 150. C. 200. D. 250.
A nominal appreciation of the Mexican peso (against all currencies) indicates that
A) the peso price of foreign currency has risen. B) the Mexican real exchange rate will not change if the price level in Mexico falls. C) the peso price of, for example, the U.K. pound has decreased. D) the number of units of foreign currency that one can obtain with one peso has increased.