Given Keynesian assumptions about the shape of the aggregate supply curve and an economy suffering a recession, which of the following is most likely to occur if the Fed pursues expansionary monetary policy?
A. The equilibrium price level and output will both increase until full employment is reached.
B. The equilibrium price level and output will both decrease.
C. The equilibrium price level will increase but output will stay the same.
D. The equilibrium output will increase but the price level will stay the same until full employment is reached.
D. The equilibrium output will increase but the price level will stay the same until full employment is reached.
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Willingness to accept is:
A) always lower than the marginal cost of production. B) always higher than the marginal cost of production. C) the lowest price that a producer is willing to receive to sell an extra unit of a good. D) the highest price that a producer is willing to receive to sell an extra unit of a good.
The citizens of Exland, whose currency is the bun, conduct the transactions outlined in the table above
a) What is Exland's current account balance? b) What is Exland's capital account balance? c) What is Exland's official settlement balance? d) What is Exland's net foreign borrowing?
Inoculation programs against certain diseases such as small pox, polio, and whooping cough create
a. public goods. b. positive externalities in consumption. c. nonrival goods. d. nonexcludable goods. e. external costs to society equal to the costs of the program.
In the United States, all ozone-depleting substances were phased out by 2005 with the exception of
a. CFCs b. halons c. methyl bromide d. HCFCs e. none of the above