Which of the following may NOT help avoid a financial crisis?
A) Maintaining credible and sustainable fiscal policies
B) Regulation and supervision of the financial system
C) Immediately bailing out financial intermediaries and standing ready to bail out others in case a financial crisis occurs
D) Maintaining credible and sustainable monetary policies
C
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The number of times per year that a dollar is spent on final goods and services defines
A) the income velocity of money. B) the money supply. C) the price index. D) GDP.
If the MPC is 0.6 and there are no imports or income taxes, the multiplier is
A) 6. B) 0.4. C) 2.5. D) 0.6. E) 1.7.
Other things remaining the same, which of the following is likely to cause a left shift in the supply curve for labor?
A) A decrease in population B) An increase in population C) A decrease in the demand for the final product that the labor is used to produce D) An increase in the demand for the final product that the labor is used to produce
What are some of the possible ways in which we could reduce the natural rate of unemployment?
What will be an ideal response?