A beneficial supply shock would cause the FE line to
A) shift to the right.
B) shift to the left.
C) remain unchanged.
D) remain unchanged if the shock is temporary; shift to the right if the shock is permanent.
A
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The primary credit rate refers to the rate at which
A. banks lend to their best customers. B. banks lend to one another to meet reserve requirements. C. the Federal Reserve charges banks (with excellent credit) for loans. D. none of these options are correct.
The elasticity of demand for employees is -0.50. It is also estimated that the existing minimum wage (price floor) has increased the raise the wage by 25% above equilibrium wage. How much would the employment change if the price floor was eliminated?
A) Employment would decrease by 12.5%. B) Employment would increase by 12.5%. C) Employment would decrease by 25%. D) Employment would increase by 25%.
Tools to help solve the adverse selection problem in financial markets include all of the following EXCEPT
A) diversification. B) government regulations to increase information. C) the use of financial intermediaries. D) the private production and sale of information.
Regulation imposed by such organizations as the Food and Drug Administration or the Environmental Protection Agency seeking to protect the welfare of people in our nation is referred to as
A) moral regulation. B) natural regulation. C) rate-of-return regulation. D) social regulation.