Which of the following is FALSE concerning the long run?
A) Economists believe that fiscal and monetary policies have no permanent effects on the economy.
B) Economists more or less agree that the economy tends to fluctuate around the level that is consistent with full employment.
C) In the long run, the unemployment rate returns to its normal level.
D) The current account must tend toward balance in the long run.
E) None of the above.
E
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About how many commercial banks are operating in the United States?
A. 8,000 B. 9,000 C. 10,000 D. Over 15,000
Which of the following entities actually executes open-market operations?
a. the Board of Governors b. the New York Federal Reserve Bank c. the Federal Open Market Committee d. the Open Market Committees of the regional Federal Reserve Banks
Rhode Island has enacted a substantial increase in the tax on employers that finances the workman’s compensation system. For some employers, the tax is about $25 per $100 paid in wages. Employers claim they cannot afford to pay the tax. Under which of the following conditions will the actual burden of the tax fall on employers?
A. The employers’ demand for labor is perfectly elastic. B. The supply of labor is perfectly inelastic. C. The employers’ demand for labor is perfectly inelastic. D. The demand for the good they produce must be perfectly inelastic.
In a business cycle, a peak represents the end of ________ and a trough represents the end of ________.
A. a recession; an expansion B. a trough; a peak C. an expansion; a recession D. a depression; an expansion