If the Fed's policies aim to increase aggregate demand, the Fed must fear
A) recession.
B) a supply shock that increases aggregate supply.
C) a supply shock that decreases potential GDP.
D) stagflation.
E) inflation.
A
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When you use currency to buy lunch, money is performing which function?
A) store of value B) medium of exchange C) barter token D) unit of purchase E) unit of currency
Refer to Scenario 9.1. The dominant strategy for Sheb is to place ________ sheep on the commons
A) 4 B) 5 C) Sheb's dominant strategy depends on how man sheep Monty places on the commons. D) Sheb has no dominant strategy.
Which of the following decreases the supply of restaurant meals?
A) Waiters get a pay raise. B) Consumers' incomes increase and restaurant meals are a normal good. C) Consumers' incomes decrease and restaurant meals are a normal good. D) The price of movies, a complement to restaurant meals, falls.
Rational expectation theory implies that accurately anticipated change in aggregate demand: a. will increase real GDP in the short run
b. will affect real GDP and inflation only in the long run. c. may affect nominal GDP but not real GDP in the short run. d. will do none of the above.