If there is a "long and variable time lag" between when a change in monetary policy is instituted and when it impacts aggregate demand and output, this will
What will be an ideal response?
make it more difficult for the Fed to properly time changes in monetary policy
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Ben quit his job as an economics professor to become a golf professional. He gave up his salary ($40,000) and invested his retirement fund of $50,000 (which was earning 10 percent interest) in this venture. After all expenses, his net winnings (profit) were $45,000. Ben’s economic profits were
A. $45,000. B. $5,000. C. $2,000. D. zero.
Suppose the figure shown represents the production possibilities frontier for Country A. Country B offers to trade four trucks for every airplane. Assuming Country A specializes in airplane production, which of the following combinations of goods could Country A consume?
A. (15 airplanes, 20 trucks)
B. (10 airplanes, 20 trucks)
C. (10 airplanes, 30 trucks)
D. (5 airplanes, 20 trucks)
Three different economies have made choices about the production of capital goods. Which of the following is most likely to produce the greatest growth in the production possibilities curve (PPC)?
a. Less production of capital goods than what is needed to replace worn-out capital. b. Greater production of capital goods than what is needed to replace worn-out capital. c. Capital goods are produced at rate needed exactly to replace worn-out capital. d. More production of consumption goods that replace worn-out capital.
JR Electronics hurries to sell off their tablet computers by offering a spring sale. Which of the following most likely caused this to happen?
a. The company expects the technology for producing tablet computers to become obsolete. b. The company expects the price of tablet computers to plummet. c. The company expects the price of tablet computers to soar. d. The company expects the technology for producing tablet computers to improve.