Refer to the graphs below. Assume that the economy is initially at equilibrium where AD2 and AS intersect in Graph 1, and also assume that the economy is initially at point C in Graph 2. If the government implements contractionary or restrictive policy, it would make the economy in graph 2 to:
A. Move from point C to point B
B. Move from point C to point A
C. Move from point C to point D
D. Remain at point C
C. Move from point C to point D
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In Econland population increased from 1 million to 1. 1 million, the number of employed workers increased from 500,000 to 600,000, but average labor productivity decreased from $20,000 per worker per year to $19,000 per worker per year. Total output in Econland ________ and the average standard of living ________.
A. increased; increased B. decreased; decreased C. increased; decreased D. decreased; increased
Dividing the dividend payment by the stock's ________ determines the dividend yield
A) closing market price B) highest yearly price C) coupon payment D) price/earnings ratio
If unemployment persists for a long period of time, the natural rate of unemployment rises
Indicate whether the statement is true or false
Each district bank of the Fed comprises of nine board of directors of which three are appointed by the:
a. Federal Reserve System member banks. b. President. c. Attorney General. d. Board of Governors of the Fed. e. Congress.