The relative quickness with which the Open Market Committee can respond to changes in economic indicators leads the Fed to
A) control precisely the growth rate of the money stock.
B) control precisely the growth rate of total spending.
C) make more frequent mistakes in monetary policy than Congress makes in executing fiscal policy.
D) use the discount rate to control bank lending and hence aggregate demand.
C
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A major computer software company maintains a technical support center in a rural area and is the only employer in this region. Suppose the local labor supply curve shifts leftward due to net migration of workers from the area
What happens to the equilibrium outcome in this labor market? A) Labor demand shifts rightward, equilibrium wage and employment levels decline B) Labor demand shifts rightward, equilibrium wage and employment levels increase C) Labor demand curve remains the same, equilibrium wage and employment levels increase D) Labor demand curve remains the same, equilibrium wage increases, and employment declines
Economic analysis indicates that environmental quality
a. is something that people value, and therefore are willing to pay for. b. should always be regulated by the government. c. is something people should be forced to pay for no matter what their income levels. d. is not important to most people.
If the SRAS curve intersects the AD curve to the left of Natural Real GDP, the economy is
A) in a recessionary gap. B) at Natural Real GDP. C) in an inflationary gap. D) at full-employment Real GDP.