Monetary policy affects real GDP by..
What will be an ideal response?
changing aggregate demand
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Real GDP in the country of Oz is growing at 5 percent and its population is growing at 2 percent. In the country of Lilliput, real GDP is growing at 4 percent and its population is growing at 0.5 percent. Thus,
A) real GDP per person in Oz is growing at a faster rate than in Lilliput. B) real GDP per person in Lilliput is growing at a faster rate than in Oz. C) real GDP per person in Lilliput is growing at the same rate as in Oz. D) real GDP per person in Lilliput is growing at a rate that is not comparable to that in Oz. E) We need more information to determine if real GDP per person in Lilliput is growing faster or slower than real GDP per person in Oz.
Why do most people choose to specialize in a narrow set of skills for their work, rather than to learn a little bit about several varied fields of endeavor?
A) They feel that doing so will minimize their chances of being unemployed. B) They don't correctly perceive the costs of being so specialized. C) It allows them to earn more income by being more productive. D) They are unaware of how much better off they would be if they diversified their skills.
If there is an excess supply of money, there is an excess
a. demand for bonds and the price of bonds will decrease b. supply of bonds and the price of bonds will decrease c. supply of bonds but the price of bonds will not change d. supply of bonds and the price of bonds will increase e. demand for bonds and the price of bonds will increase
The Keynesian economic framework is based on the assumption that prices and wages are sticky and do not adjust quickly
a. True b. False Indicate whether the statement is true or false