If prices and wages are completely flexible, expansionary monetary policies will ______.
a. set RGDP to zero
b. decrease RGDP
c. increase RGDP
d. not change RGDP
d. not change RGDP
You might also like to view...
Increasing the capital available to the workforce, holding other factors constant, tends to ________ total output while ________ labor productivity.
A. decrease; increasing B. increase; decreasing C. increase; not changing D. increase; increasing
The figure below shows an IS-LM-FE model for an economy with fixed exchange rates. Initially the economy is at Point A, a triple intersection. Here, the FE curve is steeper than the LM curve.
To maintain the fixed exchange rate and keep the economy at Point B, the monetary authority must
A. sell foreign currency and sell domestic government bonds. B. buy foreign currency and sell domestic government bonds. C. buy foreign currency and buy domestic government bonds. D. sell foreign currency and buy domestic government bonds.
The Personal Consumption Expenditure Index (PCE) is a
A. price index measuring the changes in prices of all new goods and services produced in the economy. B. statistical measure of a weighted average of prices of commodities that firms produce and sell. C. statistical measure of average prices using annually updated weights based on surveys of consumer spending. D. statistical measure of a weighted average of prices of a specific set of goods and services purchased by wage earners in urban areas.
The amount that ________ have accumulated out of past income through saving and inheritance is wealth.
A. households B. corporations C. markets D. governments