The MP Curve ________
A) demonstrates how central banks respond to changes in inflation with changes in the interest rate
B) shows how changes in interest rates affect equilibrium output
C) explains short run fluctuations in output and inflation
D) all of the above
E) none of the above
A
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Markets do not always allocate resources efficiently, however, government always does
a. True b. False
If Randy experiences a decrease in his income, we would expect that Randy's demand for
a. each good he purchases will remain unchanged. b. normal goods will decrease. c. most goods will increase. d. inferior goods will decrease.
Figure 17-1
Which of the following is true about the economy depicted in Figure 17-1?
a.
Tax incentives are being used to stimulate aggregate supply.
b.
Policy makers believe the costs of unemployment are higher than the costs of inflation.
c.
Contractionary monetary policy is being enacted to fight inflation.
d.
Prices are rising but real GDP is falling.
School Board Voters' Ordered PreferencesDavidErnieFionaNew gymNew libraryNew computer labNew libraryNew computer labNew gymNew computer labNew gymNew libraryIf a first-past-the-post vote was taken by the school board on which project gets funded and the voters' preferences are shown in the table, which project is most likely to win?
A. Computer lab B. Gym C. Library D. It will result in a three-way tie.