The reason why some economists believe that attempts by the Fed to surprise the public in a systematic way cannot be successful is that
A. information about the Fed's plans will inevitably be leaked to the public.
B. competition in the money markets would neutralize the Fed's intervention.
C. the Fed announces its goals before Congress and publishes its policy actions in the Federal Reserve Bulletin six weeks after they take place.
D. the public would eventually figure out what the Fed's policies were, negating the Fed's surprise.
Answer: D
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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
Many poorer countries face political instability and insecure property rights.
Answer the following statement true (T) or false (F)
The figure below represents the effects in the labor markets due to migration. Here, the world has been divided into a high-income "North" (left panel) and a low-income "South" (right panel). Dn and Sn are the labor demand and the labor supply curves in North. Ds and (Sr + Smig) are the labor demand and pre-migration labor supply curves in South. Sr is the post-migration labor supply curve in South. The value c is the cost of migrating.
The migration cost on a per hour basis is
A. $2.50. B. $1.25. C. $4.25. D. $6.75.
Assume that Nation A's production possibilities is either 30 units of bricks or 50 units of wheat. Nation B's production possibilities is 20 units of bricks and 40 units of wheat. Which of the following is true?
A. Nation A is the least-cost producer of wheat B. The high-cost producer of bricks is Nation A C. The opportunity cost of wheat production is lower in Nation B D. According to the principle of comparative advantage, Nation B should specialize in the production of bricks