Assuming the economy is represented by the graph shown, if the government were to enact a partially successful expansionary fiscal policy, it would be most likely to move from equilibrium:
A. A to B.
B. B to A.
C. D to C.
D. D to B.
A. A to B.
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Use a graph to show the effects of an expansionary monetary policy moving an economy out of recession and to potential real GDP. Explain what happens to aggregate demand, real GDP, and the price level
What will be an ideal response?
Which of the following usually has the highest yield at a given point in time?
A) Corporate bonds B) Municipal bonds C) Commercial paper D) U.S. Treasury bonds
If a firm in a monopolistically competitive market has a demand curve shifting to the right, it could be that:
A. negative economic profits are being earned. B. firms are leaving the market. C. the selling price is less than the average total cost of the firm. D. All of these statements are true.
Which of the following correctly describes a wage-price spiral?
a. An increase in nominal wages causes inflation, and inflation causes workers to demand even higher wages in order to keep their real income constant. This cycle can repeat itself. b. An increase in real wages due to growth in worker productivity causes inflation, which in turn increases worker productivity. c. A decrease in prices causes workers to demand higher wages, which in turn puts additional downward pressure on prices. d. None of the above.