The Federal Reserve
a. requires little time to change policy and aggregate demand responds quickly.
b. requires little time to change policy but aggregate demand responds slowly.
c. usually requires a substantial time to change policy but aggregate demand responds quickly.
d. usually requires a substantial time to change policy and aggregate demand responds slowly.
Answer: b. requires little time to change policy but aggregate demand responds slowly.
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If the GDP deflator is less than 100, which will be higher: nominal GDP or real GDP? Why?
What will be an ideal response?
Table 34-3 ? ? Output Per Unit Labor Input ? Cotton Wheat Egypt 10 2 United States 20 20 The data in Table 34-3 indicate that the United States has
A. an absolute advantage in both goods, and a comparative advantage in cotton. B. an absolute advantage in both goods, and a comparative advantage in wheat. C. only a comparative advantage in wheat. D. only a comparative advantage in cotton.
A monopolist seeks maximum profit per unit.
Answer the following statement true (T) or false (F)
Inflation rates over the last 40 years have generally:
A. decreased around the world. B. increased around the world. C. unchanged for developing nations and decreased for developed nations. D. decreased for developing nations and increased for developed nations.