Open market operations involve the purchase and sale of:
A) utility bonds
B) corporate bonds
C) municipal bonds
D) government bonds
Answer: D) government bonds
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Refer to the scenario above. What is the number of unemployed workers in the economy?
A) 1 million B) 2 million C) 3 million D) 4 million
An increase in total factor productivity
A) increases consumption, increases output, and increases the real wage. B) reduces consumption, increases output, and increases the real wage. C) reduces consumption, increases output and reduces the real wage. D) reduces consumption, reduces output, and reduces the real wage.
Based on the graph above, suppose the economy is at point 2, then output falls to 10 and there is a price shock of one percent. The inflation rate next period will be ________ percent
A) 5 B) 3.5 C) 4.5 D) 4 E) none of the above
The percentage of all sales contributed by the leading four or leading eight firms in an industry is known as
A) a horizontal merger. B) a vertical merger. C) economies to scale. D) the concentration ratio.