Suppose the economy is producing at the natural rate of output. An open market purchase of bonds by the Fed will cause ________ in real GDP the the short run and ________ in inflation in the short run, everything else held constant
A) an increase; an increase
B) a decrease; a decrease
C) no change; an increase
D) no change; a decrease
A
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Pamela's bakery produces 500 loaves of bread in a given year. Pamela pays $100 for flour and yeast, pays $600 in wages, pays $50 in interest on an existing loan, and pays $100 in taxes to the government
One of Pamela's bread slicing machines, which cost $75 each, wears out over the course of the year and must be scrapped. Pamela's profit for the year equals $75. Pamela's bread, therefore, sells for A) $0.50 per loaf. B) $1.00 per loaf. C) $2.00 per loaf. D) cannot tell, insufficient information
Name the two international institutions that have been formed to attain higher rates of global economic growth and briefly discuss what each of the agencies does
What will be an ideal response?
Higher levels of carbon dioxide may have led, over the past century, to approximately a
a. 1 degree (F) warming of the earth. b. 10 degree (F) warming of the earth. c. 1 degree (F) cooling of the earth. d. 10 degree (F) cooling of the earth.
Which of the following statements about models is correct?
a. The more details a model includes, the better the model. b. Models assume away irrelevant details. c. Models cannot be used to explain how the economy functions. d. Models cannot be used to make predictions.