Under what conditions will the inflationary impact of an expansionary monetary policy be the largest?
a. When equilibrium real GDP is at potential real GDP.
b. When there is a recessionary gap.
c. When unemployment rates are high and there is substantial excess industrial capacity.
d. When real GDP is falling and the price level is decreasing.
a
You might also like to view...
When external costs are present and government imposes a tax equal to the external marginal cost, then efficiency can be achieved
Indicate whether the statement is true or false
If you are willing to sell your lawn mower business for $355,00 . and someone offers you $420,00 . for it, this transaction will generate:
a. There is no surplus created b. $65,00 . worth of seller surplus and unknown amount of buyer surplus c. $30,00 . worth of buyer surplus and $35,00 . of seller surplus d. $65,00 . worth of buyer surplus and unknown amount of seller surplus
Tesla non price competition. Select one industry you are interested in (Tesla)and demonstrate how the existence of non-price competition influences the performance of individual firms operating within the industry. what is the structure of the industry?(oligophy, monopoly, etc.) what are the types of non-price competition that the individual firm and industry have used, both historically and today, and how these methods have influenced product sales of the respective firms.
Specialization and trade are beneficial to society because:
A. a division of labor lowers prices for products. B. scarce resources are utilized more efficiently. C. the output of economic goods may be increased with no increase in resources. D. All of these are correct.