Suppose that oil prices increase sharply while the rate of growth in labor productivity declines. The combination of these two factors should ________.
A. shift the short-run aggregate supply curve to the right
B. shift the short-run aggregate supply curve to the left
C. shift the aggregate demand curve to the left
D. shift the aggregate demand curve to the right
Answer: B
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The quantity theory of money is a proposition about
A) the nominal interest rate and the quantity of money demanded. B) the Fed's methods used to change the quantity of money. C) nominal and real interest rates. D) the relationship between financial assets and currency demanded. E) the relationship between a change in the quantity of money and the price level.
Which of the following is not a consequence of the Fed changing the reserve requirement?
A) Changes in the ratio are easily incorporated into banks' routine management. B) Changes in the ratio effectively places a tax on banks' deposit taking and lending activities. C) Decreasing the ratio will increase excess reserves. D) Increasing the ratio will decrease the amount of reserves banks have to loan.
The major factor contributing to the appreciation of the dollar between 1995 to 2000 was:
A) decrease in capital inflows. B) increase in capital inflows. C) slow GDP growth in the U.S. D) none of the above.
Suppose nominal GDP equaled $10,988 billion while the M2 money supply was $6,063 billion. What was the velocity of the M2 money stock?
A. 0.45 B. 0.55 C. 1.81 D. 2.36