What is measured on the vertical axis of the aggregate demand graph?
A. nominal income
B. the price level
C. real GDP per year
D. unemployment
Answer: B
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Which of the following statements is the MOST accurate? In general
A) the monetary approach to the exchange rate is a long run theory. B) the monetary approach to the exchange rate is a short run theory. C) the monetary approach to the exchange rate is both a short and long run theory. D) the monetary approach to the exchange rate neither long run nor short run theory. E) the monetary approach to the exchange rate is considered less practical than the law of one price.
Which of the following is true for the world as a whole?
a. During the past 200 years, the income per person of the world has increased sharply, but there has been little change in the years of life expectancy at birth. b. During the past 200 years, the years of life expectancy at birth has increased sharply, but there has been little change in the world's income per person. c. During the 800 years between 1000 and 1800, the increases in both world income per person and life expectancy at birth were small, but both of these indicators have increased sharply during the past 200 years. d. Both income per person and life expectancy rose steadily during 1000-1800, but neither of these indicators have increased much during the past 200 years as the population of the world has become larger and larger.
With rent controls, which of the following is most likely to occur?
A) decreased search activity B) black market activity C) a building boom D) a housing surplus
The “Taylor rule” for monetary policy provides the Fed with a
A. mechanical prescription for monetary policy. B. benchmark to guide policy decisions. C. time frame for discount rate changes. D. rule for changing the M1 money supply.