From 2000 to 2010, the GDP in Country A increased by 50 percent and inflation rose by 75 percent. Considering this example, which of the following conclusions is most likely accurate?
a. Country A had a fluctuating economy.
b. Country A had a stable economy.
c. Country A had economic growth.
d. Country A had economic problems.
d. Country A had economic problems.
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When the price level increases there is ________ movement along the aggregate demand curve because the buying power of money ________
A) a downward; increases B) an upward; increases C) an upward; decreases D) no; does not change E) a downward; decreases
In September of 2007, the Federal Reserve Board Open Market Committee voted to lower interest rates for the first time that year. Explain how lower interest rates affect the aggregate demand curve
What will be an ideal response?
One advantage of ad valorem taxes over unit taxes is that _____
a. the tax is more difficult to evade b. the tax is easier to collect c. the tax increases with inflation d. the tax automatically adjusts for inflation
A fixed exchange rate policy:
A. imports monetary policy. B. strengthens domestic interest rate policy. C. will likely make domestic inflation more volatile. D. decreases central bank policy accountability and transparency.