Expansionary monetary policy to prevent real GDP from falling below potential real GDP would cause the inflation rate to be relatively ________ and real GDP to be relatively ________
A) lower; higher B) higher; higher C) lower; lower D) higher; lower
B
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How does a rise in the federal funds rate affect aggregate demand, real GDP, and the price level?
What will be an ideal response?
In order to increase sales the firm can
a. Increase the reference price for the product b. Decrease prices c. Differentiate their product d. All of the above
When analyzing a problem, if an economist is attempting to understand why something happened without considering whether or not the action was fair or just, the economist is thinking
A. positively. B. justifiably. C. normatively. D. negatively.
As the dollar is devaluated
A. inflationary pressures are reduced and our standard of living is reduced. B. inflationary pressures are increased and our standard of living is increased. C. inflationary pressures are reduced and our standard of living is increased. D. inflationary pressures are increased and our standard of living is reduced.