In the Keynesian model, suppose the Fed sets a target for the real interest rate. If the IS curve shifts to the left, and the Fed wants to keep output unchanged
A) taxes will increase.
B) the money supply will decline.
C) the real interest rate will decrease.
D) taxes will decrease.
C
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A bowed Production Possibilities Curve (PPC) indicates
A) inefficient production. B) that the trade-off between the 2 goods is not constant. C) changing technology. D) only 1 good is always being produced.
A country produces only ice cream and pie. Quantities and prices of these goods for the last several years are shown below. The base year is 2008. Prices and Quantities Year Price of Ice Cream Quantity of Ice Cream Price of Pie Quantity of Pie 2008 $2.50 40 $5.00 20 2009 $3.00 50 $6.00 25 2010 $4.00 40 $6.00 30 Refer to Table 23-9. This country’s inflation rate from 2009 to 2010 to the nearest tenth was
A. real GDP was $250, and the GDP deflator was 125 B. real GDP was $240, and the GDP deflator was 125 C. real GDP was $240, and the GDP deflator was 120 D. real GDP was $250, and the GDP deflator was 120
Briefly explain why the same job in the United States that is done with robots may be done by hand in a rural African country.
What will be an ideal response?
Which of the following ismostlikely to increase the supply of corn?
A. The farm worker's union successfully negotiates a pay increase for corn harvest workers. B. The Surgeon General announces that eating corn bread contributes to baldness in men. C. Congress and the President eliminate subsidies formerly paid to corn farmers. D. Farmers that grow soybeans can also grow corn, and the price of soybeans drops by 75 percent.