Identify whether each of the following transactions will take place in the factor market or in the product market:
a. Shondra buys a Harley-Davidson Softail motorcycle.
b. Aimee works 20 hours a week at a grocery store.
c. Gustavo sells a warehouse to a produce delivery company.
d. Ocean Spray increases employment at its Middleboro, Massachusetts plant.
a takes place in the product market.
b, c, and d take place in the factor market.
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An increase in the actual rate of inflation is most likely to cause a decrease in ________
A) the ex post real interest rate B) the ex ante real interest rate C) the nominal interest rate D) the expected real interest rate E) none of the above
Up until the early 1880s, there was no federal control over private activities
Indicate whether the statement is true or false
What is meant by the term government failure as described in this chapter?
Please provide the best answer for the statement.
Which of the following is NOT a basis for the Taylor-rule guideline for how the Federal Reserve should set its target value for the federal funds rate?
A. the gap between actual real GDP and a measure of potential real GDP B. an estimated long-run real interest rate C. the current deviation of the actual inflation rate from the Fed's inflation objective D. the present deviation of the actual unemployment rate from the Fed's unemployment objective