Suppose that for several periods the aggregate demand and supply curves have been intersecting at the same point, and at full employment. Then the central bank increases money growth as a result of an announced 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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The aggregate supply of labor is the
A) total amount of time a person works over his or her lifetime. B) total amount of time a person spends in the labor force over his or her lifetime. C) unemployment rate. D) sum of the labor supplied by everyone in the economy.
If the Federal Open Market Committee decides to expand the money supply, then it will
A. raise the discount rate to member banks. B. issue directions to purchase government securities, thus putting more reserves in member banks. C. issue directions to sell government securities, thus taking reserves from member banks. D. order new Federal Reserve notes delivered to member banks.
According to the new growth theory
A) technology should be considered as a factor of production.
B) technology is a natural by-product of invention.
C) technology plays a minor role in economic development.
D) technology provides few rewards to the society.
Suppose that at the equilibrium price and quantity, the marginal revenue is ?$15 and the price elasticity of demand for a linear demand function is ?0.75. Then we know that the equilibrium price is:
A. ?$45. B. $45. C. ?$5. D. $5.