If there were a favorable supply shock and the central bank wanted to offset the change in the unemployment rate, what would it do?
It would reduce the money supply growth rate.
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
The effort used to coordinate the factors of production is a description of
A) entrepreneurshi
An enterprise that has only one shareholder does not constitute a corporation
a. True b. False Indicate whether the statement is true or false
Transfer prices should be set to so
A) to maximize profits for only one unit in a multi-unit firm. B) allow arbitrage with the external market place. C) to maximize profits for the overall firm. D) none of these choices.