The use of money and credit controls to change the macroeconomy is
A. Fiscal policy.
B. No longer used in the United States.
C. Considered ineffective by most economists.
D. Monetary policy.
Answer: D
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According to the graph shown, at a price of $5, there is a:
A. shortage of 10.
B. shortage of 20.
C. shortage of 30.
D. surplus of 20.
Gross Domestic Product in 2013 was almost five times larger than it was in 1960 but it is important to note that
a. none of the growth represented more output. b. measurement of output omitted any effect of inflation. c. the population grew substantially over the same time period. d. graphs of output were unable to display such growth.
Suppose the economy is experiencing an inflationary gap. Based on available data, the Fed starts implementing contractionary monetary policy, but this moves the economy into a recessionary gap. The most probable explanation is that, because of the total lag in monetary policy, the government did not realize that the economy was already healing itself, i.e., that the
A) AD curve was shifting rightward. B) AD curve was shifting leftward. C) SRAS curve was shifting rightward. D) SRAS curve was shifting leftward.
Derived demand is
A. the demand for goods and services produced by companies using scarce resources. B. a derivative of the demand curve. C. the demand for the factors of production that are used to produce goods and services. D. the demand for advertising to increase the sales of the product.