Which of the following correctly describes what the Fed used as monetary targets in the past?
A) The Fed used M1 and M2 as targets after 1993.
B) After 1980 and before the 1990s, the Fed focused on interest rate targets.
C) The Fed focused on M1 as a target after deregulation of the financial markets.
D) The Fed increased its reliance on interest rate targets since the mid-1990s.
D
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Growth accounting refers to the method used to
A) identify the contribution of economic growth from increased capital, labor, and technological progress. B) measure growth in the capital stock. C) measure the growth in the labor force. D) identify the costs of promises made by the government today but paid for by future generations.
The above figure shows the market for labor. The employer is a monopsony. The firm will maximize its profit by hiring 400 hours of labor because at that point
A) MCL > W. B) VMP > W. C) MCL > VMP. D) MCL = VMP.
Given the values in the table above, consumption is ________ when equilibrium output is 15
A) 12.3 B) 11.86 C) 12.05 D) 11.55 E) none of the above
Assume that the central bank increases the reserve requirement. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real GDP and net nonreserve-related international borrowing/lending in the context of the Three-Sector-Model?
a. There is not enough information to determine what happens to these two macroeconomic variables. b. Real GDP falls, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). c. Real GDP rises, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). d. Real GDP rises, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). e. Real GDP falls, and net nonreserve-related international borrowing/lending becomes more negative (or less positive).