If the Fed fears inflation, it ________ by ________ government securities
A) decreases aggregate supply; selling
B) decreases aggregate demand; selling
C) increases aggregate supply; buying
D) decreases aggregate supply; buying
E) increases aggregate demand; selling
B
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Which of the following is most important for the achievement of long-term economic growth and a high level of per capita income?
a. abundant natural resources b. foreign aid c. policies and institutions that encourage productive activities d. institutions and policies that control the growth of population
If the economy is experiencing inflation, then the most appropriate government policy would be to:
A. shift the aggregate demand curve by using a tax increase coupled with spending cuts. B. shift the aggregate demand curve by using a tax increase coupled with more spending. C. shift the aggregate demand curve by using a tax cut coupled with spending cuts. D. shift the aggregate supply curve by using a tax cut coupled with more spending.
Which of the following is not a lagging indicator?
A. duration of unemployment B. stock prices C. outstanding commercial and industrial loans D. prime rate
Education increases the stock of which factor of production?
A) physical capital B) human capital C) land D) entrepreneurship