Based on the table above,
a. What is the equilibrium price level and real GDP?
b. If potential GDP is $11.0 trillion, what does that imply about the economy's level of employment?
c. If potential GDP is $9.0 trillion, what does that imply about the economy's level of employment?
a. The equilibrium price level is 105; the equilibrium real GDP is $10.0 trillion.
b. If potential GDP is $11.0 trillion, then the economy is at an equilibrium that is a below full-employment equilibrium with a recessionary ga
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Soo Jin shares a one-bedroom apartment with her classmate. Her share of the rent is $700 per month. She is considering moving to a studio apartment which she will not have to share with anyone. The studio apartment rents for $950 per month
Recently, you ran into Soo Jin on campus and she tells you that she has moved into the studio apartment. Soo Jin is as rational as any other person. As an economics student, you rightly conclude that A) Soo Jin figures that the additional benefit of having her own place (as opposed to sharing) is at least $250. B) Soo Jin did not have a choice; her roommate was a slob. C) Soo Jin figures that the additional benefit of having her own place (as opposed to sharing) is at least $950. D) the cost of having one's own space outweighs the benefits.
Fed policy since the early 1990s indicates that it is pursuing a policy of targeting the
A) monetary base. B) money supply. C) federal funds interest rate. D) exchange rate.
One year into the crisis, Argentina's interest payments were roughly equal to
A) 100 percent of exports. B) 60 percent of exports. C) 45 percent of exports. D) 10 percent of exports.
Which of the following tools of monetary policy is considered the most important on a day-to- day basis?
A. The discount rate. B. The reserve ratio. C. Open-market operations. D. Paying interest on reserves.