The "true" costs of inflation to an economy include all of the following except:
A. higher relative prices.
B. noise in the price system.
C. shoe-leather costs.
D. unexpected redistribution of wealth.
Answer: A
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What makes up M1? Is M1 larger or smaller than real GDP?
What will be an ideal response?
Although the Fed professed employment of ________ targeting during the 1970s, its behavior suggests that it emphasized ________ targeting
A) free-reserve; interest-rate B) interest-rate; monetary aggregate C) monetary aggregate; interest-rate D) free reserve; monetary aggregate
Which of the following is an example of an organization using marginal analysis?
A. A hotel manager calculating the average cost per guest for the past year. B. A farmer hoping for rain. C. A government official considering what effect an increase in military goods production will have on the production of consumer goods. D. A business calculating economic profits.
Refer to the information provided in Figure 24.4 below to answer the question(s) that follow.
Figure 24.4Refer to Figure 24.4. The value of Point A is
A. $3,000 billion. B. $4,000 billion. C. $5,000 billion. D. the same as the value of Point B.