A rightward shift of the money supply ________
A) may come about from an increase in the quantity of money supplied by the Federal Reserve
B) may come about from a decrease in the price level
C) leads to a decrease in interest rates ceteris paribus
D) all of the above
E) none of the above
D
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The Bureau of Labor Statistics counts as employed people who work part-time, but would prefer to work full-time. Suppose the people who had part-time jobs, but wanted full-time jobs, were counted as unemployed
Explain how the unemployment rate and the labor force participation rate would change.
Banks experience interest rate risk
A) if adverse selection problems are particularly severe. B) if moral hazard problems are particularly severe. C) on any investment that has high information costs. D) if changes in interest rates cause bank profits to fluctuate.
Once wartime spending is under way and production is diverted away from household consumption items and private investment goods,
(a) real Gross National Product will likely fall. (b) the money supply will automatically increase. (c) inflation will likely rear its ugly head if productivity does not advance. (d) production and employment will fall.
Every point on a ________ represents the minimum cost at which the associated output level can be produced when the scale of plant can be changed.
A. long-run demand curve B. marginal cost curve C. long-run variable cost curve D. U-shaped long-run average cost curve