Expansionary monetary policy refers to the ________ to increase real GDP
A) Federal Reserve's decreasing the money supply and increasing interest rates
B) government's decreasing spending and raising taxes
C) Federal Reserve's increasing the money supply and decreasing interest rates
D) government's increasing spending and lowering taxes
C
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Compare Pareto optimality with the utilitarian view that says we are better off when the overall gain in utility exceeds the overall loss in utility by the consumers. What are the effects of the differences for policy? Can this concept be applied to public goods?
What will be an ideal response?
Which of the following is correct?
A. Although land has no production cost from society's viewpoint, rental payments are costs to individual producers. B. Land rent is not a cost to either society or individual producers. C. Although land rent is a cost from society's viewpoint, it is not a cost to individual producers. D. Land rent is a cost to both society and individual producers.
Refer to Figure 1A.1. If the hours worked per week are 30, the income per week is:
A. 50. B. 100. C. 150. D. 200.
According to the efficiency wage model, during a recession, firms will not reduce real wages because
A. unions would go on strike, reducing profitability. B. the equilibrium real wage has increased. C. legally, they can't. D. this would reduce worker effort and productivity.