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?
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.
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)