During Japan's economic slump in the early 1990s, monetary policy:
a. was highly effective at stimulating income.
b. was caught in a liquidity trap as a result of high inflation and interest rates.
c. was ineffective because of a liquidity trap caused by near zero interest rates.
d. was never even attempted.
e. was the cause of the slump.
C
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The consumer price index for the current year measures the cost of a standard basket in the ________ year relative to the cost of the same basket in the ________ year.
A. current; current B. base; current C. base; index D. current; base
Suppose a change in technology increases the marginal product of labor. The result is a(n):
A. downward movement along the demand for labor curve. B. rightward shift in the demand for labor curve. C. leftward shift in the demand for labor curve. D. upward movement along the demand for labor curve.
Which of the following is TRUE about how the aggregate demand curve differs from the individual's demand curve?
A. The individual's demand curve will shift when there is a change in taxes while the aggregate demand curve will not. B. The individual's demand curve shows the relationship between price and quantity demanded while the aggregate demand curve is not influenced by price. C. The individual's demand curve is just for an individual while the aggregate demand curve looks at the entire circular flow of income. D. For the individual's demand curve equilibrium is determined by the intersection of supply and demand while for the aggregate demand curve equilibrium is determined by the real balance effect.
A share of ownership in a company is called
A. dividends. B. stock. C. a mortgage. D. a bond.