Refer to Figure 15-12. In the dynamic AD-AS model, if the economy is at point A in year 1 and is expected to go to point B in year 2, the Federal Reserve would most likely
A) increase the inflation rate. B) decrease interest rates.
C) not change interest rates. D) increase interest rates.
D
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When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
Based on the figure above, as a result of international trade, consumer surplus
A) increases by $150 million. B) decreases by $150 million. C) increases by $90 million. D) decreases by $90 million. E) remains unchanged.
A college student working in a minimum-wage job has a __________ opportunity cost of __________ than a college dean
a. lower; market work b. lower; leisure c. higher; market work d. higher; nonmarket work e. higher; leisure
Industries may be oligopolistic due to barriers to entry.
Answer the following statement true (T) or false (F)