Suppose that for several periods the aggregate demand and supply curves have been intersecting at the same point, and at full employment. The central bank increases money growth as a result of an unannounced policy change
Under the assumption of adaptive expectations the likely short-run result is __________ output and __________ price level. A) rising; a rising
B) rising; an unchanged
C) unchanged; a rising
D) unchanged; an unchanged
A
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In the figure above, the curve going through point A represents
A) an upward-sloping demand curve. B) the line of equality. C) the wage curve. D) the Lorenz curve.
A corporation may be reluctant to raise capital by issuing stock because
a. issuing stock to obtain money for investment is riskier than selling bonds. b. holders of already-existing stock will gain more voting power in the corporation. c. obtaining government permission to issue stock can be time-consuming and expensive. d. All of the above are correct.
The total return on a share of stock is
A. the original price of the stock, divided by the change in the stock price. B. the total of dividends over a year, divided by the change in the stock price. C. the change in the stock price, plus the dividend, divided by the original price. D. the total of dividends plus the change in the stock price over a year.
In the absence of externalities, the "invisible hand" leads a market to maximize
a. producer profit from that market. b. total benefit to society from that market. c. both equality and efficiency in that market. d. output of goods or services in that market.