Which of the following is true?
a. When increased government purchases or expansionary monetary policy does give the economy a boost, no one knows precisely how long it will take to do so.
b. Given the difficulties of timing stabilization policy, an expansionary monetary policy intended to reduce the severity of a recession may instead add inflationary pressures to an economy that is already overheating.
c. If velocity changes, but it moves in a fairly predictable pattern, the connection between money supply and GDP is still fairly predictable.
d. All of the above are true.
d
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You bought a subscription for an online magazine and shared your log-in details with a friend. Your friend is a ________ in this case
A) free-rider B) rent seeker C) speculator D) hedger
Using the Figure 13.3 above explain why this firm could not possibly represent a monopolist. What type of firm is represented by this graph and why?
What will be an ideal response?
If aggregate production in the economy exceeds aggregate purchases
A. firms are producing more during the year than they are selling. B. unintended inventory investment is negative. C. the economy is operating at a real GDP greater than equilibrium GDP. D. saving must be negative.
DVD writers allow people to record TV shows in a high-quality format. They entered the market in 2002 at a price of $1000. By 2003, they were under $500. By the time they become part of the CPI market basket they are likely to be less than $250. Economists will argue that this type of issue
A. is well handled the by the BLS as they determine the CPI. B. leads to the CPI overstating the rate of inflation. C. leads to the CPI understating the rate of inflation. D. is irrelevant to CPI calculations.