In Taylor Rule equation, high value of parameter b indicates that
A) Fed cares more about avoiding recessions and high unemployment than about avoiding inflation.
B) Fed cares more about avoiding inflation than about avoiding recessions and high unemployment.
C) Fed cares more about avoiding recessions than about avoiding high unemployment.
D) Fed cares more about avoiding high unemployment than about avoiding recessions.
A
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Assume a hypothetical case where an industry begins as perfectly competitive and then becomes a monopoly. Which of the following statements comparing the conditions in the industry under both market structures is true?
A) A monopoly will produce less and charge a lower price than would a perfectly competitive industry producing the same good. B) A monopoly will produce more and charge a higher price than would a perfectly competitive industry producing the same good. C) A monopoly will produce more and advertise more than would a perfectly competitive industry producing the same good. D) A monopoly will produce less and charge a higher price than would a perfectly competitive industry producing the same good.
In 2011, the U.S. experienced
a. both current account and financial account deficits. b. a deficit in the current account and a surplus in the financial account. c. a surplus in the current account and a deficit in the financial account. d. a surplus in both the current account and the financial account.
Answer the following statement(s) true (T) or false (F)
1. National income accounting is a uniform means of measuring economic performance. 2. Economists use the quantity produced to measure the value of goods and services for GDP. 3. GDP includes the value of new goods as well as used goods. 4. For the economy as a whole, expenditures must equal income. 5. (X – M) is a spending category for the expenditure approach.
How does the fact that imports vary directly with GDP affect the stability of the domestic economy?
What will be an ideal response?