What are the two policy-making bodies of the Federal Reserve?
A) the Board of Governors and the U.S. Congress
B) the Board of Governors and the Federal Open Market Committee
C) the Board of Governors and the Presidents' office
D) the Federal Open Market Committee and the U.S. Congress
Ans: B) the Board of Governors and the Federal Open Market Committee
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Economics only applies to
A. decision making by households. B. decision making by governments. C. decision making by business firms. D. all of these kinds of decisions.
The United States is the world's leading grain-producing nation. Exporting U.S. grain causes the
a. domestic consumption of grain to rise because of the added foreign demand. b. price of grain in the domestic market to fall because foreigners are now taking some of the domestic demand. c. price of grain to domestic consumers to rise because of the added foreign demand. d. standard of living of foreigners to fall because they lose purchasing power.
If an improvement in the quality of education in the United States increases the productivity of labor, this will
a. increase aggregate demand and decrease aggregate supply. b. increase short-run aggregate supply and reduce aggregate demand. c. decrease aggregate demand and increase short-run aggregate supply. d. increase both long-run and short-run aggregate supply.
Which of the following is correct if there is a favorable supply shock?
a. the short-run aggregate supply curve and the short-run Phillips curve both shift right. b. the short-run aggregate supply curve and the short-run Phillips curve both shift left. c. the short-run aggregate supply curve shifts right and the short-run Phillips curve shifts left. d. the short-run aggregate supply curve shifts left and the short-run Phillips curve shifts right.