One implication of the policy ineffectiveness proposition (PIP) is that expansionary __________ policy is not effective at raising __________
A) monetary; Real GDP
B) monetary; the price level
C) fiscal; the price level
D) a and b
E) a and c
A
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The classical model of Malthus predicted that economies would
A) continue to grow indefinitely. B) experience rapid technological progress. C) reach a state where the growth of real GDP per person stopped. D) experience significant productivity growth.
If the demand for a product is said to be relatively inelastic, the "absolute" value of the elasticity coefficient will be
A) less than one. B) greater than one. C) equal to one. D) zero.
The process of buying financial assets to stimulate the economy when the central bank target interest rate is near or at zero and the interest rate cannot be lowered further is called:
a. bond-trading. b. quantitative bidding. c. open market purchase. d. quantitative easing. e. open market sale.
At a constant rate of exchange between currencies, higher inflation makes domestic goods sold abroad ____expensive and, hence, ________ short-run equilibrium output.
A. more; decreases B. less; increases C. more; increases D. less; decreases