If the Fed decides that it wants to lower the unemployment rate, it ________ the growth rate of aggregate demand by ________ the growth rate of money and ________ interest rates
A) accelerates; accelerating; lowering
B) reduces; accelerates, lowering
C) accelerates; reducing; lowering
D) accelerates; reducing; raising
E) accelerates; accelerating; raising
A
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The law of demand asserts that all else equal, if the price of a good ________, the quantity demanded of that good ________
A) stays the same; decreases B) falls; decreases C) rises; stays the same D) falls; increases E) None of the above is correct.
The market for cigarettes likely has a:
A. highly elastic demand. B. slightly elastic demand. C. highly inelastic demand. D. slightly inelastic demand.
A worse of a recession is called _______ in the business cycle.
a. a downturn b. a peak c. a trough d. an expansion
A Pigouvian subsidy should be set equal to the amount of the external benefit.
a. true b. false