Which of the following is an intermediate target?

A) M2
B) reserves
C) unemployment rate
D) inflation rate


A

Economics

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If real GDP and aggregate expenditure are less than equilibrium expenditure, what happens to firms' inventories? How do firms change their production? And what happens to real GDP?

What will be an ideal response?

Economics

Adam Smith's invisible hand principle stresses the tendency of

A) government regulation to bring the self interest of individuals into harmony with the economic welfare of society. B) compassion to encourage productive economic activity. C) the competitive market process to direct self-interested individuals into activities that enhance the economic welfare of society. D) self-interested individuals to pursue activities that benefit themselves, but harm the overall economic welfare of society.

Economics

The modern view of the Phillips curve suggests that:

A. when inflation is reduced, unemployment will fall below the natural rate. B. the Phillips curve is an unstable relationship. C. systematic demand stimulus policies will be unable to affect prices in the long run. D. there will be a trade-off between inflation and unemployment in the long run.

Economics

If there are only two airlines that fly between Dallas and New Orleans, what will happen in the market for one airline if the other one goes out of business?

A. The demand curve will shift to the left. B. The demand curve will shift to the right. C. There will be a movement to the right along the initial demand curve. D. There will be a movement to the left along the initial demand curve.

Economics