Starting from an initial long-run equilibrium, an unanticipated shift to a more expansionary monetary policy would tend to increase
a. prices and unemployment in the long run.
b. real output in the short run but not in the long run.
c. real output in the long run but not in the short run.
d. real output in both the long run and the short run.
B
You might also like to view...
The table above gives the supply schedule for a product. Using the midpoint method, find the price elasticity of supply between points A and B, between B and C, between C and D, and between D and E
What will be an ideal response?
Since the founding of the IMF, most international reserves have been held in
A) gold. B) silver. C) U.S. dollars. D) British pounds sterling.
A price ceiling:
a. is the lowest price that the law will allow to be charged in the market. b. is the highest price that the law will allow to be charged in the market. c. is the price that must be charged in the market. d. would be imposed if the government believes the market equilibrium price is too low. e. would only be applicable in the case of non-essential goods.
The marginal fixed cost of a firm:
a. is a positive constant irrespective of output level. b. declines as output is increased because a fixed numerator is divided by an ever-growing denominator. c. generally increases as output is increased. d. is equal to average variable cost and average total cost at their minimum points. e. is always equal to zero and is therefore ignored by economists.