The Fed raised interest rates in 2004 and 2005 . This implies, other things the same, that the Fed
a. increased the money supply because it was concerned about unemployment.
b. increased the money supply because it was concerned about inflation.
c. decreased the money supply because it was concerned about unemployment.
d. decreased the money supply because it was concerned about inflation.
d
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If an economy's growth rate of real GDP is 3 percent per year and the growth rate of the population is 2.5 percent per year, the growth rate of real GDP per person is
A) 3 - 2.5 = 0.5 percent per year. B) 3 + 2.5 = 5.5 percent per year. C) 2.5 - 3 = -0.5 percent per year. D) [(3 - 2.5 ) ÷ 2.5] × 100 = 20 percent per year. E) [(2.5 - 3 ) ÷ 3] × 100 = 16.6 percent per year.
The steepness of a curve is partially determined by the units of measurement
a. True b. False Indicate whether the statement is true or false
One of the features of the circular flow model is that it shows the: a. interaction between the government and firms in the financial market
b. interaction between employers and employees in the labor market. c. interaction between households and firms in the market for goods and services. d. interaction between large business houses and households in the financial market.
Collusion is most likely to succeed when there are
A. few firms and low barriers to entry. B. many firms and low barriers to entry. C. few firms and high barriers to entry. D. many firms and high barriers to entry.