When the economy is hit by a negative demand shock and the central bank does not respond by changing the autonomous component of monetary policy, then
A) inflation will be lower.
B) output will be at its potential.
C) output will be lower.
D) inflation will not change.
E) both A and B.
E
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The production function is concave in capital because
A) the contribution to production of each additional unit of capital decreases. B) the marginal product of capital is increasing. C) the marginal product of labor is decreasing. D) the cost of loans increases with their quantity.
If people move from the category "not in labor force" to the category "employed" then:
a. The unemployment rate falls, and the employment rate rises. b. The unemployment rate stays the same, and the employment rate rises. c. Neither the unemployment rate nor the employment rate changes. d. Labor force participation rate rises, the employment rate rises, and the unemployment rate rises. e. The employment rate and non-institutional population over 16 rise.
Is it possible for a serious third party to emerge in the United States, positioned ideologically between the Democrats on the left and the Republicans on the right? Why or why not?
What will be an ideal response?
The two economic groups competing for power during the transition from mercantilism to capitalism were:
A. craft guilds and industrialists. B. craft guilds and the lords of the manor. C. merchants and the lords of the manor. D. serfs and craft guilds.