Assuming prices and wages are fully flexible, the aggregate supply curve will be:
A. upward sloping, but not vertical.
B. vertical.
C. horizontal.
D. downward sloping.
Answer: B
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Everything else remaining unchanged, what will happen if the Fed sells government bonds in the open market and borrowed reserves is zero?
A) It will cause both the equilibrium federal funds rate and equilibrium quantity of reserves to fall. B) It will cause the equilibrium federal funds rate to fall, but no change in the equilibrium quantity of reserves. C) It will cause the equilibrium federal funds rate to rise, but no change in the equilibrium quantity of reserves. D) It will cause the equilibrium federal funds rate to rise and the equilibrium quantity of reserves to fall.
If a drought reduced by 20 percent the quantity of wheat available for consumption, by how much would the price of wheat have to rise to clear the market if the price elasticity of demand was .25?
A) 4 percent B) 4.5 percent C) 5 percent D) 25 percent E) 80 percent
Which of the following statements regarding the unemployment rates in the U.S. between 1971 and 2002 is true?
a. The unemployment among the whites were much lower compared to the non-whites. b. The unemployment rate for all workers reached a low of 2.9 percent in 1982. c. The unemployment rate of both male and female workers have consistently increased from 1971 to 1998. d. The whites had much higher unemployment rates than the nonwhites. e. Teenagers reported the lowest unemployment rates in the country.
In Vidalia, real GDP increased by 6% and the population increased by 9% in 2018. In 2018, Vidalia experienced
A. economic growth, but not an increase in living standards. B. no economic growth, but an increase in living standards. C. economic growth and an increase in living standards. D. an economic decline.