A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock.
B. long-run demand shock.
C. long-run supply shock.
D. short-run demand shock.
Answer: A
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On the graph above, unplanned inventory investment is negative at point ________
A) A B) B C) G D) H E) none of the above
Which of the following is not a bargaining advantage enjoyed by bureau's?
a. They only have one legislature to deal with so bureaus are quite experienced in extracting a favorable budget agreement. b. The legislature typically gets all information on the bureau from the bureau itself. c. The bureaus have the ability to go out and hire the best negotiators while members of the legislature are the fixed negotiators on the other side. d. Considerable bargaining occurs in committees comprised of high demanders of the output of the bureaucracy.
Refer to Table 26-6. Suppose the table above illustrates the values of real and potential GDP and the price level if the Fed does not vote to change their current policy to be more contractionary or expansionary
If the Fed wants to keep real GDP at its potential level in 2017, should the Fed use a contractionary or expansionary policy? Should it raise or lower its interest rate target? How should it conduct open market operations to achieve its goal?
The public debt neither adds to nor subtracts from national production or consumption, but
a. if the bondholders are only the rich, the rich lose in the long run b. poorer people, because they hold fewer bonds, end up paying less taxes c. no individuals lose because everyone holds debt d. individuals may gain or lose depending on whether they hold debt e. neutrality of the debt means it is a win/win situation for everyone