An expansionary monetary policy is likely to increase real output more than just temporarily:
a. when actual output currently is beyond the economy's long-run capacity.
b. when the economy currently is at full employment
c. when the economy currently operates at less than capacity.
d. at virtually any output level.
c
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Use the figure below to answer the following question.
A decrease in supply would best be reflected by a change from
A. point 3 to point 4. B. point 5 to point 6. C. point 2 to point 1. D. point 5 to point 1.
Which of the following statements regarding generic drugs and name-brand pharmaceuticals is false?
A) Pharmaceutical companies have spent large amounts of time and money in their attempts to reduce competition from generic drugs. B) Generic drugs have the same chemical content as the corresponding branded drug. C) On average, a generic drug can reduce U.S. sales of a branded drug by as much as 50 percent in the first six months. D) Pharmaceutical companies need only to renew the patents they have on certain drugs to protect them from competition by generic drugs.
Which is a plausible cause of the movement in Figure 13.1 from point 1 to point 2?
A) a change in expectations that causes a decline in the real interest rate for investments B) a decrease in expected inflation C) the economy's self-correcting mechanism D) the central bank achieves a negative value for the nominal interest rate E) none of the above
It is ___________ for a country to have a very high level of trade while also having a near-balance between the value of exports and imports.
a. possible b. impossible c. likely d. unlikely