Suppose that for several periods the aggregate demand and supply curves have been intersecting at the same point, and at full employment. Then the central bank increases money growth as the result of an announced policy change
Under New Classical assumptions the likely short-run result is __________ output and __________ price level. A) rising; a rising
B) rising; an unchanged
C) unchanged; a rising
D) unchanged; an unchanged
C
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If a country imposes a tariff on all imports, then you would expect to see:
a. an increase in this country's current account surplus. d. an increase in this country's foreign lending. c. in increase in this country's exchange rate. d. a and b. e. all of the above.
A firm operating at MC = MR must be making a profit.
Answer the following statement true (T) or false (F)
Suppose that the bond market and the money market start out in equilibrium. Explain the process by which the interest rate and the price of bonds will change as a result of the Fed increasing the money supply
A decrease in the quantity of resources
What will be an ideal response?