What were the three unconventional policy approaches used by the Fed during the financial crisis of 2007-2009?
What will be an ideal response?
The first was declaring a commitment to keeping interest rates low in the future. The second was supplying aggregate reserves beyond the quantity needed to lower the policy rate to zero. The third was altering the mix of assets in its balance sheet in order to change their relative interest rates in a way that stimulates the economy.
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Which of the following factors help to explain the sustained increases in health care spending in the United States, and which do not?
a. the additional paperwork, duplication, and waste generated in the U.S. health care system compared to systems in other countries b. the increasing costs of malpractice insurance and malpractice lawsuit settlements c. the number of uninsured patients receiving hospital treatment that could have been performed at a lower cost in doctors' offices d. the slow growth in labor productivity in health care compared to that in the economy as a whole e. the aging population f. increases in the cost of providing health care
A relatively flat aggregate demand curve indicates that
A) velocity is relatively constant. B) the economy is near full employment. C) inflation is relatively low. D) spending is sensitive to changes in the price level.
Discuss the inefficiencies that can be caused by stock market bubbles, especially focusing on firms and consumers.
What will be an ideal response?
Labor productivity increases when
A. the average output produced per worker during a specified time period decreases. B. the unemployment rate decreases. C. the average number of hours people work goes up. D. the average output produced per worker during a specified time period increases.