In the 1970's the Federal Reserve responded to an adverse supply shock. Its policy made
a. the recession that followed smaller and so provided a more favorable tradeoff between inflation and unemployment.
b. the recession that followed smaller, but in doing so produced a less favorable tradeoff between inflation and unemployment.
c. the recession that followed larger, but in doing so provided a more favorable tradeoff between inflation and unemployment.
d. the recession that followed larger and also produced a less favorable tradeoff between inflation and unemployment.
b
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If a fear of increased bankruptcies of firms causes banks to increase their reserve to deposit ratio, then
a. the money supply and money multiplier will rise. b. the monetary base and the money multiplier will fall. c. there will be no change in the money multiplier, but the money supply will fall. d. the money multiplier and the money supply will fall.
Segregation in public schools has declined since the early 1980s
Indicate whether the statement is true or false
Which of the following is an example of a normative statement?
a. The moon is made of green cheese. b. Women should earn the same income as men. c. When the price of a good rises, people will buy more of it. d. The more time you spend studying, the higher your economics test scores will be. e. The more time you spend studying for chemistry, the higher your economics test score will be.
Suppose that the market price for hot dogs sold by street vendors has just risen from $4.50 to $5.00, and that in response Curly has now begun operating a hot dog cart. We can assume that Curly's reservation price for hot dogs is:
A. $4.50. B. at least $5.00. C. greater than $4.50 but no more than $5.00. D. $5.00.