If the short-run equilibrium output of the United States exceeds the potential output, the Fed:
a. employs an active monetary policy to close a recessionary gap.
b. employs an active monetary policy to close an expansionary gap.
c. relies on a passive approach to close a recessionary gap.
d. relies on a passive approach to close an expansionary gap
e. employs an expansionary fiscal policy.
b
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In the circular flow of economic activity
A) aggregate expenditure measures the dollar value of purchases of factors. B) aggregate expenditure measures the dollar value of purchases of final goods and services. C) aggregate income measures the dollar value of labor resources only. D) aggregate expenditure is measured as it moves through the financial markets.
Refer to Table 5.3. Rank the doctor's job options in expected income order, highest first
A) Work for HMO, open own practice, do research. B) Work for HMO, do research, open own practice. C) Do research, open own practice, work for HMO. D) Do research, work for HMO, open own practice. E) Open own practice, work for HMO, do research.
Refer to the table below. If the discount rate is 5 percent and the cost of the investment is $42,000, what is the net present value of the investment?
The above table shows the future operating profits from an investment. The future operating profits are earned at the end of each of the respective years.
A) $44,854.77
B) $2,854.77
C) $3,599.22
D) $42,464.22
Our high rate of productivity growth following World War II began to decline around the year _____.
Fill in the blank(s) with the appropriate word(s).