In Figure 8.5, if this economy's inflation goal is a price level of P2 but the equilibrium price level is P3, one way to accomplish this using fiscal policy would be to
A. Decrease AS by decreasing the money supply.
B. Decrease AD by decreasing income taxes.
C. Increase AS by reducing government regulations.
D. Decrease AD by reducing transfer payments.
Answer: D
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The average duration of unemployment
A) decreases during recessions and increases during expansions. B) increases during recessions and decreases during expansions. C) does not vary with the business cycle. D) decreases all the time. E) increases all the time.
Refer to Table 19-18. What is nominal GDP in 2016 when 2011 is the base year?
A) $28,885 B) $11,790 C) $11,200 D) $10,275
Productivity is
A. Output per unit of input. B. The inverse of cost efficiency. C. The increment of output produced when one more unit of an input is employed in the production process. D. The same as marginal revenue.
Banks that receive their charters from the federal government are called ________ banks.
Fill in the blank(s) with the appropriate word(s).