Suppose the Federal Reserve makes monetary policy more expansionary. In the long run
a. both inflation and the unemployment rate are higher than they were prior to the change in policy.
b. inflation is higher and the unemployment rate is the same as it was prior to the change in policy.
c. inflation is lower and the unemployment rate is lower than it was prior to the change in policy.
d. inflation is lower and unemployment is the same as it was prior to the change in policy.
b
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Which of the following would be removed from the U.S. aggregate demand measurement?
A. Japan’s purchase of General Electric combines from the United States B. China’s purchase of soybeans from U.S. farmers C. A foreign tourist’s purchase of New York City Statue of Liberty keychains D. An American professor’s purchase of a vintage manuscript from Rome, Italy
A college must decide if it wants to offer more evening and weekend classes. This decision involves answering the economic question of "for whom to produce."
Indicate whether the statement is true or false
In general, countries with well-defined property rights, less government regulation, and lower taxes have
A. More corruption and crime. B. Higher rates of economic growth for the entire population. C. Higher per capita incomes. D. Higher rates of investment.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point B to Point C so that an additional 20 OLED televisions could be produced, production of LCD televisions would have to be reduced by
A. more than 30. B. exactly 60. C. fewer than 30. D. exactly 30.