US are experiencing a productivity growth. When comparing to other countries with lower productivity growth, we expect to see
a. Its exchange rate appreciating
b. Its exchange rate depreciating
c. It has no effect on the US exchange rate
d. None of the above
a
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By the time Paul Volcker took office as the new Federal Reserve chairman in 1979, the inflation rate exceeded 10%. By the end of 1986 the inflation rate had been brought down to 1.9%. Which of the following is true about the Volcker Disinflation?
A) lower inflation resulted from a tightening of monetary policy B) by raising the federal funds rate to over 20%, the Federal Reserve stimulated the economy resulting in lower levels of both inflation and the unemployment rate by the early 1980s C) the unemployment rate was brought down by 1982 but it took longer to reach lower inflation rates D) all of the above E) none of the above
In the IS curve, if Y increases for any given level of the real interest rate ________
A) consumption increases B) output decreases C) saving decreases D) all of the above E) none of the above
The equilibrium level of real GDP is $5,000 billion, the full employment level of real GDP is $6,000 . and the marginal propensity to consume (MPC) is 0.90 . Which of the following statements is true?
a. A recessionary gap exists equal to $100 billion. b. The full employment target could be reached if government increased its spending by $100 billion. c. Both of the above statements are true. d. Neither of the above statements are true.
Which of the following will most likely accompany an unanticipated increase in aggregate demand?
a. an increase in real output b. an increase in unemployment c. a decrease in real GDP d. a decrease in the demand for resources