During 2001-2004, the Fed injected additional reserves into the banking system, which reduced the federal funds rate and other short-term interest rates. Other things constant, what is the most likely short-run impact of this policy?
a. an increase in the rate of unemployment
b. a reduction in the growth of employment
c. an increase in aggregate demand and real GDP
d. a reduction in the long-run rate of inflation
C
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When a country's production possibilities frontier shifts outward over time, the country is experiencing
A) no opportunity cost. B) economic growth. C) higher unemployment of resources. D) a decrease in unemployment of resources. E) an end to opportunity cost.
Refer to above figure. If OmL1 workers are employed in manufacturing then what is the marginal productivity of labor in agriculture?
What will be an ideal response?
The components of the U.S. M1 money supply are demand and checkable deposits plus
A) currency. B) currency plus savings deposits. C) currency plus travelers checks. D) currency plus travelers checks plus money market deposits.
What shape did the short-run aggregate supply curve have during the 1930s, according to Keynes? Explain
What will be an ideal response?