Suppose the Federal Reserve pursues contractionary monetary policy. In the long run
a. both inflation and the unemployment rate are higher than they were prior to the change in policy.
b. inflation is higher and the unemployment rate is the same as it was prior to the change in policy.
c. inflation is lower and the unemployment rate is lower than it was prior to the change in policy.
d. inflation is lower and unemployment is the same as it was prior to the change in policy.
d
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The table above gives the demand schedule for water bottled by Wanda's Healthy Waters. Wanda's marginal cost is a constant $4 a bottle and has no fixed cost. Wanda's makes an economic profit of ________ a day
A) $0 B) $24 C) $36 D) $60
Which of the following statements is correct?
A) Through autonomous monetary policy adjustments the Federal Reserve can ultimately determine the equilibrium real interest rate in the long run. B) Through autonomous monetary policy adjustments the Federal Reserve can ultimately determine potential output in the long run. C) Through autonomous monetary policy adjustments the Federal Reserve can target any inflation rate in the long run. D) all of the above E) none of the above
Summarize the assumptions that underlie Reverend Thomas Malthus’s model and contrast what Malthus expected to happen with what has actually occurred since the nineteenth century.
What will be an ideal response?
The hypothesis that people are nearly, but not fully rational, cannot possibly fully examine every available choice, and utilize simple rules of thumb in making decisions is known as the
A. bounded rationality hypothesis. B. ceteris paribus hypothesis. C. individual aggregation hypothesis. D. irrationality hypothesis.