What is monetary policy?
What will be an ideal response?
Monetary policy refers to the actions that the Federal Reserve takes to manage the money supply and interest rates to pursue macroeconomic policy objectives.
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Which of the following does NOT shift the short-run aggregate supply curve?
A) a change in the money wage rate B) technological progress C) a reduction in the price of a raw material D) a change in the price level
In economics, the accumulated skills and training that workers have is known as
A) physical capital. B) human capital. C) innovation. D) entrepreneurship.
The income effect implies that there is a positive relationship between
A) income and the unemployment rate. B) the unemployment rate and the inflation rate. C) aggregate supply and aggregate demand. D) monetary growth and interest rates.
Which of the following statements is true of explicit costs for a firm? a. Explicit costs include the opportunity costs of the funds that are invested in a firm
b. Explicit costs do not include the opportunity costs of the funds that are invested in a firm. c. Explicit costs are deducted from the total revenue of a firm to calculate the economic profit made by the firm. d. Explicit costs for a firm are always higher than its implicit costs.