Econometric models of the U.S. economy generally agree
A) on the quantitative impact of monetary policy over a horizon of several years.
B) that an increase in money growth will increase output in the short run.
C) that an increase in money growth will decrease output in the short run.
D) that an increase in money growth will decrease output in the long run.
E) that "rational expectations" is the best way to generate policy forecasts.
B
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Going to the dentist would be counted in GDP as
A) insurance utilization. B) a measure of welfare. C) a service. D) crowns and fillings.
Which of the following is not considered an ultimate target that the monetary authority attempts to control?
a. Growth in real GDP b. The rate of unemployment c. The rate of inflation d. The money supply
Developing countries have higher birth rates because:?
What will be an ideal response?
Answer the following statements true (T) or false (F)
1) If unemployed workers leave a nation, the standard of living (national income per capita) will rise in that nation. 2) "Backflows" are payments made by immigrants back to their home countries. 3) Illegal immigrants displace domestic-born workers on a one-for-one basis. 4) Illegal immigration can result in higher wages for domestic-born workers who are complementary inputs.