The Fed does not have perfect control over the money supply in the short run.
Answer the following statement true (T) or false (F)
True
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When government spending is less than the tax revenues during a specific time period, this is known as a
A) government budget deficit. B) government budget surplus. C) balanced budget. D) public debt.
The long-run real interest rate is the long-run nominal interest rate ________
A) minus inflation expectations B) plus all taxes C) plus inflation expectations D) minus all taxes
When the market clearing price of gasoline after a hurricane spikes to $6.00 but legislators enact "anti-gouging" legislation that keeps prices at $4,
A) consumers as a whole will tend to benefit. B) producers will have less incentive to bring gasoline to the areas where gasoline is most highly valued. C) government will ensure that no shortages will develo
After a negative demand shock, what are the expected long-run adjustments?
a. Wages rise, price level rises, and output falls back to potential b. Wages fall, price level rises, and output falls back to potential c. Wages fall, price level falls, and output increases back to potential d. Wages fall, price level rises, and output increases back to potential e. Wages rise, price level falls, and output increases back to potential