Your business' success is most likely to be affected by Federal Reserve policy if it is in the
A) defense industry.
B) health services industry.
C) restaurant industry.
D) residential construction industry.
D
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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
When the interest rate increases, people will adjust their precautionary demand for money
A) downward or upward depending upon the actual supply of money. B) upward. C) not at all. D) downward.
What is the dilemma faced by firms in collusive agreement to restrict output and boost price?
What will be an ideal response?
During a severe and persistent recession, Keynesians would most likely propose
A) tax increases. B) a tight money policy. C) annually balanced federal budgets. D) macroeconomic stabilization.