If the Fed wants to reverse the effects of an adverse supply shock on unemployment, it should
a. increase the money supply growth rate which raises the inflation rate.
b. increase the money supply growth rate which reduces the inflation rate.
c. decrease the money supply growth rate which raises the inflation rate.
d. decrease the money supply growth rate which reduces the inflation rate.
a
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In 2017 inflation adjusted U.S. poverty threshold was
A. The cost of food and shelter but not other necessities for an individual. B. An annual income of less than $25,000 for a family of four. C. The dollar measure of output produced by an individual. D. An annual income of less than $10,000 for a family of two.
On Saturdays, Stan goes to the park to play his saxophone. Some of the people in the park love listening to Stan play, while others find his music really annoying. In this case, Stan's saxophone playing generates:
A. a positive externality. B. both positive and negative externalities. C. a negative externality. D. neither a positive nor a negative externality.
If a company raises prices on a product with elastic demand, total revenues will probably decrease.
a. true b. false
Related to the Economics in Practice on p. 626: According to a study cited in the Economics in Practice, if a country is relatively far from the technological frontier of the rest of the world, what would be its best strategy?
A. The government needs to keep helping its firms find the world frontier until the firms reach the frontier. B. The government should begin by offering incentives and encourage some risk taking. C. The government needs to help its firms find the world frontier, and then as firms approach the frontier, the government should offer incentives and encourage some risk taking. D. The government should adopt a hands-off approach and let the private sector bring the country to the world frontier.