If the Fed pursues expansionary monetary policy then
a. the money supply will decrease, interest rates will rise and GDP will fall.
b. the money supply will decrease, interest rates will fall and GDP will fall.
c. the money supply will increase, interest rates will rise and GDP will rise.
d. the money supply will increase, interest rates will fall and GDP will rise.
c. the money supply will increase, interest rates will rise and GDP will rise.
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Goods, such as L.A. Lakers tickets and parking spaces around the stadium, are sometimes consumed together. Which of the following would decrease the demand for parking spaces around the stadium?
A) An increase in the price of Lakers tickets B) A higher parking fee C) A decrease in the price of Lakers tickets D) A substantial increase in the price of local cab services
The vertical axis of the aggregate demand-aggregate supply model measures the amount of
a. total employment. b. total final output. c. the price level. d. net exports.
An inferior good
a. has a negative income elasticity. b. is one where the demand curve shifts to the left when income goes up. c. exists only in theory. d. is a low-quality good. e. Both a and b are true.
Which of the following suggests that the "laws" of supply and demand are being disobeyed?
a. outside forces disturbing an equilibrium b. persistent shortages or surpluses c. the market never moving from an equilibrium d. "other things" not always being equal