In 1975 the Swiss National Bank announced a policy of targeting ________
A) the level of income
B) interest rates
C) rational expectations
D) monetary aggregates
D
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
One of the key reasons why monopolies exist is:
A. there is easy entry and exit into and out of the market. B. the goods sold are highly inaccessible to buyers. C. geographical differences. D. there are barriers to entry into the market.
The aggregate demand curve slopes downward indicating that:
A. an increase in the general price level will reduce the aggregate quantity of goods and services demanded. B. an increase in the general price level will increase the aggregate quantity of goods and services demanded. C. a change in the interest rate will alter the aggregate quantity of goods and services demanded. D. consumers substitute between domestic-made and foreign-made goods as their relative prices change.
If population growth occurs while labor force participation does NOT increase,
A. a nation's labor resources will still continue to increase in both quality and quantity. B. per capita GDP is likely to increase sharply. C. economic growth will still continue because any population gain is a plus. D. there may be no increase in labor resources or economic growth.