In reality, the Fed is unable to use monetary policy to keep real GDP exactly at its potential level
Indicate whether the statement is true or false
TRUE
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All of the following are reasons why China is unlikely to maintain high enough rates of productivity growth to catch-up with the standard of living in the United States except
A) because of the low birth rate in China, the labor force will soon decline. B) much of China's growth is likely due to the transition from a centrally-planned economy to a market economy. C) the Chinese migration of rural workers to more productive urban jobs. D) the United States invests more in research and development. than does China.
Which of the following statements is correct?
a. A decrease of government spending is most effective in the flat part of the SRAS curve. b. An increase in interest rates is most effective in the flat part of the SRAS curve. c. An increase in the money supply is most effective in the steep part of the SRAS curve. d. A tax increase is most effective in the steep part of the SRAS curve.
Which of the following examples shows inventory investment?
a. Vicente’s Bookstore orders many bestselling books to be ready for the holiday season. b. Florencia hires another employee to help during the holiday rush. c. Diego buys several glass blowers to help his production of glass vases. d. Martina has a new air conditioning system installed to make workers more comfortable.
Refer to Scenario 1.1 below to answer the question(s) that follow.SCENARIO 1.1: An economist wants to understand the relationship between minimum wages and the level of teenage unemployment. The economist collects data on the values of the minimum wage and the levels of teenage unemployment over time. The economist concludes that a 1% increase in minimum wage causes a 0.2% increase in teenage unemployment. From this information he concludes that the minimum wage is harmful to teenagers and should be reduced or eliminated to increase employment among teenagers.Refer to Scenario 1.1. The collection and use of the data on minimum wage and teenage unemployment over time is an example of
A. empirical economics. B. econometrics. C. economic history. D. law and economics.