Government policies can be developed to work against the problems of unemployment and inflation because government can
a. decrease aggregate demand to combat unemployment and increase aggregate demand to combat inflation
b. increase aggregate supply to combat unemployment and decrease aggregate demand to combat inflation
c. increase aggregate supply to combat unemployment and decrease aggregate supply to combat inflation
d. increase aggregate demand to combat unemployment and increase aggregate demand to combat inflation
e. increase aggregate demand to combat unemployment and decrease aggregate demand to combat inflation
Answer: d. increase aggregate demand to combat unemployment and increase aggregate demand to combat inflation
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Which statement most accurately captures the state of money today?
A) Money today includes currency, bank deposits and checks. B) Money today includes currency and checks but not bank deposits. C) Money today includes bank deposits and currency but not checks. D) Money today includes bank deposits and checks but not currency. E) Money today includes checks and credit cards.
If nominal GDP = $15 trillion and the quantity of money is $3 trillion, what is the velocity of circulation?
A) 45 B) 18 C) 5 D) 12
Sandra's Sweaters' production function is shown in the above table. Sandra rents three knitting machines for $30 a day each and hires workers at a wage rate of $40 a day
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The large number of bank failures in the 1980s compared to the number of failures in earlier decades appears to be evidence __________ the existence of __________ problem in deposit insurance
A) supporting; a moral hazard B) supporting; an adverse selection C) against; a moral hazard D) against; an adverse selection