The FOMC meets approximately eight times per year and at these meetings they
a. set a target federal funds interest rate.
b. set a target money supply.
c. set a target employment target.
d. All of the above
e. None of the above
A
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Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
Suppose Enid could increase her total utility by purchasing one more book and one less video rental. Which of the following is true?
a. The marginal utility of video rentals exceeds the marginal utility of books. b. The marginal utility of books exceeds the marginal utility of video rentals. c. The marginal utility of video rentals is negative. d. The marginal utility per dollar spent on books exceeds that of video rentals. e. Total utility is at a maximum.
Joe Spengler, now age 54, lost his job as a shipbuilder during the recession of 1991 . His plant never reopened, and he has very specialized skills that are no longer in demand. Joe's unemployment is best classified as
a. cyclical b. structural c. discouraged d. frictional e. voluntary
Refer to Figure 8.3. What is the average cost of producing 290 units of output?
A. $9
B. $2,500
C. $8.62
D. $7.77