U.S. monetary policy is best described as:
A. aimed at keeping inflation low and stable and growth high and stable.
B. one of the most important functions of congress.
C. attempting to keep inflation constant at zero percent.
D. determining the denominations of a country's currency.
Answer: A
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The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
What is the "cost disease of personal services" phenomenon and why does it help explain why tuition rates keep going up so fast?
A particular brand of toothpaste costs 4 British pounds in London. The nominal exchange rate is .80 and the real exchange rate is about 1.16 . These numbers imply that the U.S. price of the same toothpaste is about
a. $5.79 b. $4.29 c. $3.70 d. $2.76
Figure 10-18
Given the shift of the aggregate demand curve from AD1 to AD2 in , the real GDP and price level (CPI) in long-run equilibrium will be
a.
$10 billion and 200.
b.
$4 billion and 150.
c.
$10 billion and 150.
d.
$10 billion and 100.