Which of the following will likely increase the demand for downtown parking in a large city?
A) Improved bus service to the downtown area
B) Lower downtown parking fees
C) More downtown parking lots
D) More freeways leading to the downtown area
E) Much higher gasoline prices
D
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Refer to Figure 14.3. Suppose the economy is initially at long-run equilibrium and the economy experiences a demand shock such as a stock market crash
Other things equal, following the effect of the stock market crash, the economy will ultimately end up at a new long-run equilibrium ________ the initial long-run equilibrium. A) that is the same as B) with a higher real GDP and a higher inflation rate than C) with a higher real GDP than, and the same inflation rate as D) with a higher inflation rate than, and the same real GDP as
During the period of rapid industrialization in the U.S. after the Civil War,
(a) real farm incomes fell drastically. (b) real incomes in the agricultural sector increased at a faster pace than real incomes in manufacturing. (c) real incomes in the agricultural sector increased at relatively the same rate as real incomes in manufacturing. (d) real incomes in the agricultural sector increased but at a slower pace than real incomes in manufacturing.
Issuing stock is riskier for corporations since there is a legal requirement to pay dividends.
Answer the following statement true (T) or false (F)
If multiplier effects are ____ than policy makers expect or the natural rate of real output is _____ than expected, monetary policy will tend to overshoot its intended effects
a. Greater; greater. b. Greater; less c. Less; greater d. Less; less