________ shifts the Fed rule to the left.
A. A decrease in government spending
B. A decrease in the price level
C. An increase in the Z factors
D. An increase in government spending
Answer: C
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Because the value of marginal product diminishes as the quantity of labor employed increases, the ________ the wage rate, the ________ workers the firm hires
A) lower; more B) higher; more C) lower; fewer D) None of the above answers is correct because there is no relationship between the wage rate and the number of workers hired.
Raising interest rates following the use of unconventional policy tools depend on
A. both the size and composition of the central bank's balance sheet and the toolbox available to the central bank. B. the size and composition of the central bank's balance sheet. C. neither the size and composition of the central bank's balance sheet and the toolbox available to the central bank. D. the toolbox available to the central bank.
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
A key difficulty facing insurance companies is that people know more about their health than do insurance companies, and that those people who are seriously ill are the most likely to want to obtain health insurance
What is this phenomenon called? A) asymmetric information B) moral hazard C) economic irrationality D) adverse selection