The consensus of major econometric models is that monetary policy has
A) no effect on real GDP.
B) an effect on real GDP only in the long run.
C) a negative effect on real GDP.
D) a substantial short-run effect on real GDP.
D
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A person's wealth
A) is measured independent of his or her current and expected future income. B) is a measure of how much money the person has. C) equals the value the person's assets minus his or her liabilities. D) All of the above are correct.
The short-run Phillips curve implied when all changes in aggregate demand are caused by changes in the money supply is
a. upward sloping. b. downward sloping. c. horizontal. d. vertical. e. None of the above
Which of the following countries is not an OPEC member?
A. Saudi Arabia B. Iran C. Venezuela D. Norway
The law of diminishing returns, as it applies to labor, means that
A. the average product of labor increases at a decreasing rate. B. the total output eventually decreases. C. the marginal product of labor will eventually be a horizontal line at zero. D. the marginal product of labor eventually declines. E. the average product of labor starts to decline before the marginal product of labor.