General sources of shocks that can cause business cycles include the following, except:
A. Irregular occurrence of innovations and productivity changes
B. Monetary factors and financial instability
C. Unemployment jumps and production drops
D. Political events, either domestic or global
C. Unemployment jumps and production drops
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When the economy was at full employment in the late 1990s, the price level was continually rising. This meant
a. the Fed was pursuing a passive monetary policy. b. the Fed was pursuing an active monetary policy. c. hawk and dove policies canceled each other out. d. the economy's self-correcting mechanism was not operating. e. none of the above.
During the financial crisis of 2007-2009, the proper policy response was
a. contractionary monetary and fiscal policy. b. contractionary monetary and expansionary fiscal policy. c. expansionary monetary and fiscal policy. d. expansionary monetary and contractionary fiscal policy.
In an open economy, the price of a TV will be ________.
A. $75 B. $175 C. $275 D. $125
What is the threshold age for individuals to be considered as being in the "labor force" for statistical purposes?
A. 16 B. 18 C. 21 D. Over 21