Which of the following examples would best stop a recession?
a. in the long run, a well-designed monetary policy that decreases the money supply
b. in the short run, a well-designed monetary policy that decreases the money supply
c. in the long run, a well-designed monetary policy that increases the money supply
d. in the short run, a well-designed monetary policy that increases the money supply
d. in the short run, a well-designed monetary policy that increases the money supply
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The consumer price index (CPI) includes only a market basket of goods and services purchased by the typical urban consumer
a. True b. False Indicate whether the statement is true or false
Assume that smartphones are a normal good, and that the prices of smartphones have fallen in recent years. Over this same period, the price of the components used to produce smartphones has also fallen and consumer incomes have risen. Which of the
following best explains the falling prices of smartphones? A) The supply curve for smartphones has shifted to the right while the demand curve for smartphones has shifted to the left. B) The demand curve for smartphones has shifted to the right more than the supply curve has shifted to the right. C) The demand curve and the supply curve for smartphones have both shifted to the left. D) The supply curve for smartphones has shifted to the right more than the demand curve has shifted to the right.
A firm that faces a downward sloping demand curve is known as a
A. price taker. B. price searcher. C. utility maximizer. D. perfect competitor.
Refer to the graphs, in which the numbers in parentheses near the AD1, AD2, and AD3 labels indicate the levels of investment spending associated with each curve. All figures are in billions. What is the desired level of investment spending in this economy if it is to achieve a noninflationary full-employment level of real GDP?
A. $50
B. $100
C. $150
D. $225