The multiplier effect relates:
A. Changes in the price level to changes in real GDP
B. Changes in the interest rate to changes in investment
C. Changes in disposable income to changes in consumption
D. Changes in spending to changes in real GDP
D. Changes in spending to changes in real GDP
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Which of the following is a major argument of trade optimists?
(a) Industrial policy can increase productivity of developing country manufacturing efficiency. (b) New synthetic substitutes are constantly being discovered and improved. (c) Developing country efficiency would improve with trade liberalization. (d) All of the above.
The Fed has announced that it plans to lower the rate of monetary growth from 10% per year to 2% per year. You would expect this announcement to directly
A) increase money demand, shifting the LM curve up and to the left. B) increase money demand, shifting the LM curve down and to the right. C) decrease money demand, shifting the LM curve up and to the left. D) decrease money demand, shifting the LM curve down and to the right.
Technology is
A) society's pool of knowledge of how to produce goods and services. B) a resource like land or physical capital. C) computers and lasers. D) not obtainable by engaging in activities that increase human capital.
Which of the following was not a lesson from the 2007-2009 financial crisis?
a. Regulatory failures were the result of weaknesses across the regulatory structure. b. The financial system operated with too much leverage. c. The business cycle no longer applies to economic analysis. d. Monetary policy alone may not be sufficient to stabilize aggregate demand.