In Figure 5.3, the most elastic supply curve:
A. is Supply1.
B. is Supply2.
C. is Supply3.
D. cannot be determined.
Answer: C
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In the money market, in the short run in order to decrease the nominal interest rate, the Fed must
A) increase the discount rate. B) increase the quantity of money. C) decrease the quantity of money. D) decrease the demand for money. E) directly lower the interest rate and not change either the demand for money or the supply of money.
Variables measured at current market prices are nominal, rather than real. In what sense are nominal variables unreal?
What will be an ideal response?
Which of the following statements about the "separate but equal" provision of Plessy v. Ferguson is MOST accurate?
a. resulted in African-American schools that were comparable to white schools. b. resulted in African-American schools that were preferable to white schools in the South. c. did not seriously hamper the labor market experience of African-Americans. d. led to the creation of African-American schools that were systematically under funded.
If the Real GDP increases from one year to the next, we could conclude the country experienced:
A. inflation and no change in output. B. an increase in output and no change in prices. C. a definite increase in output and may have experienced an increase in prices. D. definite inflation and may have experienced an increase in output.