If the Federal Reserve decreases the rate at which it increases the money supply, then unemployment is higher in
a. the long run and the short run.
b. the long run but not the short run.
c. the short run but not the long run.
d. neither the short run nor the long run.
c
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Suppose Albania is exporting product B, and experienced economic growth biased in favor of product B as seen in the figure above. We are also told that Albania's new consumption point is at point d
Would you still consider the economic growth, which took place biased in favor of B? If Albania were a large country how would this growth affect its terms of trade?
The difference between the price the seller receives for a good or service and the minimum price he would be willing to accept for that unit is called: a. the total gains from trading that unit. b. the gain in producer surplus
c. the gain in consumer surplus. d. the total surplus.
Which of the following is a distinguishing characteristic of a user charge?
a. Persons pay roughly in proportion to the extent that they use the good or service. b. Persons with high incomes pay a larger amount than persons with lower incomes for the same good or service. c. Persons with high incomes pay a larger percentage of their income than persons with lower incomes for the same good or service. d. Persons with high incomes pay a smaller percentage of their income than persons with lower incomes for the same good or service.
In an open mixed economy, the inflationary expenditure gap may be described as the:
A. Excess of GDP over C a + I g + X n + G at the full-employment output B. Excess of S a + M + T over I g + X + G at the full-employment GDP C. Extra consumption that occurs when investment increases in a full-employment economy D. Excess of C a + I g + X n + G at the full-employment GDP