Some say the ECB draws too heavily on the German model. What is its major focus?
A) reliance on the ability of the European parliament to engage in fiscal policy when necessary
B) the notion that the economy needs monetary stimulus to weather frequent recessions
C) that the unemployment problem, especially in Eastern Europe, should take priority over price stability
D) that price stability (low inflation) is the primary policy goal, separated from political influence or having to address regional economic slowdowns
Ans: D) that price stability (low inflation) is the primary policy goal, separated from political influence or having to address regional economic slowdowns
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The formula for the CPI is
A) (Cost of CPI market basket at base period prices ÷ Cost of CPI market basket at current period prices) × 100. B) (Cost of CPI market basket at current period prices ÷ Cost of CPI market basket at base period prices) × 100. C) (Cost of CPI market basket this year × Cost of CPI market basket at base period prices) × 100. D) (Cost of CPI market basket this year × Cost of CPI market basket at base period prices) ÷ 100. E) (Cost of CPI market basket at current period prices ÷ Cost of CPI market basket at next year's prices) × 100.
The concept of aggregate supply refers to a
A. fixed number of output. B. list of products demanded. C. schedule of output. D. schedule of production costs.
Retirement savings allows retirees to consume more of their disposable income because
A. they have a better work ethic than the young. B. they have better credit histories than the young. C. they can withdraw from their retirement savings accounts. D. they do not have debt.
In the above figure, the farmer faces a trade-off between beans and wheat equal to
A. one-to-one. B. three-to-one. C. one-to-four. D. one-to-two.