To stabilize real GDP, the Fed must increase the money supply in response to a
a. positive demand shock
b. low level of unemployment
c. sudden upsurge in inflation
d. rise in the interest rate
e. negative demand shock
E
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Use the following graph for a competitive market to answer the question below.
Assume the government imposes a $2.25 tax on suppliers, which results in a shift of the supply curve from S1 to S2. The amount of the tax paid by the seller is
A. $2.25. B. $0. C. $1.00. D. $1.25.
Members of the Executive Board of the European System of Central Banks are appointed to ________ year, nonrenewable terms
A) four B) eight C) ten D) fourteen
Government borrowing may crowd out borrowing by private interests because
A) funds are not available at any interest rate. B) the equilibrium interest rate increases. C) the supply curve shifts to the left. D) None of the above.
GDP per capita is about 10 times higher in industrially advanced countries (IACs) than in the poorer less-developed countries (LDCs)
a. True b. False Indicate whether the statement is true or false