To eliminate an inflationary gap, the aggregate demand curve should
A. shift outward.
B. become vertical.
C. become horizontal.
D. shift inward.
Answer: D
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An economist is unlikely to be hired to do research about the following?
A. Oil prices. B. Election outcomes C. Interest rate D. Inflation rates E. Unemployment
When the Fed buys $10 million in T-bills, interest rates will ________ because the LM curve shifts ________
A) fall; left due to the increase in the demand for money and loans B) rise; right due to the increase in the supply of money and loans C) fall; right due to the increase in the supply of money and loans D) rise; left due to the increase in the supply of money and loans
A study of the impact of various government policies on economic growth would be considered:
A. macroeconomics. B. marginal economics. C. government economics. D. microeconomics.
The mid-point method of calculating price elasticity of demand:
A. measures the percentage changes relative to a point midway between two points on a demand curve. B. measures the percentage change relative to a point midway between demand and supply. C. measures the absolute change relative to a point midway between two points on a demand curve. D. None of these is true.