Suppose the economy is at full employment and firms become more pessimistic about the future profitability of new investment. Which of the following will happen in the short run?
A) The aggregate demand curve will shift to the right.
B) Prices will rise.
C) Output will rise.
D) Unemployment will rise.
D
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Use the following graph for the federal funds market to answer the next question.
If the Fed wants the federal funds rate to be at if1, what quantity of reserves do they need to make available to banks?
A. Qf1 B. Qf2 C. Qf3 D. It cannot be determined with the information given.
What are the three properties of money?
What will be an ideal response?
Consider a country that initially does not interfere with imports of a given good. If the government then imposes a tariff on that good, the supply curve
a. shifts downward. b. remains unchanged. c. slopes upward less steeply. d. shifts upward.
In the main chorus of the Keynes-Hayek rap lyrics, Keynes states "I want to steer markets" and Hayek replies, "I want them set free.". These statements are referring to
a. the tendency of Keynesians to favor government intervention and central planning and the tendency of Hayekians to favor free markets. b. the tendency of Keynesians to favor restrictive fiscal policy and the tendency of Hayekians to favor expansionary fiscal policy. c. the tendency of Keynesians to favor budget deficits and the tendency of Hayekians to insist on budget surpluses. d. the tendency of Keynesians to favor fiscal policy and of Heyekians to favor monetary policy.