Refer to Figure 28-1. Suppose that the economy is currently at point A, and the unemployment rate at A is the natural rate. What policy would the Federal Reserve pursue if it wanted the economy to move to point C in the long run?
A) Sell treasury bills.
B) Increase the money supply.
C) Lower the discount rate.
D) Buy treasury bills.
E) No policy will move the economy to point C in the long run.
E
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Refer to Scenario 10.9. What is the profit maximizing level of output?
A) 0 B) 30 C) 45 D) 60 E) none of the above
World economic growth, as measured by increases in real GDP per-capita, was essentially zero during the period
A. 1946-1980. B. 1865-1929. C. 1750-1860. D. 1300-1750.
Which of the following statements has been proposed as a benefit of passive policymaking?
A. Passive policymaking does not wait for the time lag between recognition of a problem and policy action before engaging in economic policies to stabilize the economy. B. Passive policymaking utilizes the rational expectations hypothesis. C. When using passive policymaking there is no tradeoff between price stability and unemployment. D. Passive policymaking allows for making immediate changes in response to an anticipated change in economic performance.
What is a secondary market?
A) a market where factory seconds and damaged merchandise are sold B) a market where newly issued bonds are sold to initial buyers by the borrowing firm C) a market where a newly issued stocks are sold to initial buyers by the borrowing firm D) a market where you can sell any stocks you own as a private investor