Changes in factors of production that influence economic growth will
A. shift SRAS but not LRAS.
B. shift SRAS and LRAS.
Answer; B. shift SRAS and LRAS.
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Suppose that the interest rate is greater than the equilibrium interest rate. Which of the following occurs?
I. There is an excess quantity of money. II. The quantity of money automatically increases. III. The interest rate falls. A) I B) I and II C) I and III D) I, II and III
According to research by Stock and Watson, the recent decline in volatility in many macroeconomic variables was a
A) sudden drop that occurred around 1984. B) gradual decline throughout the 1980s. C) sudden drop that occurred around 1990. D) gradual decline throughout the 1990s.
Which of the following is a primary objective of monetary policy?
A) achieving a zero natural rate of unemployment B) targeting a zero rate of inflation C) achieving price stability D) all of the above E) none of the above
If two or more oligopolistic companies work together to keep their prices high and split the market between them, this is called
A. collusion. B. profit splitting. C. market sharing. D. perfect competition.