Which of the following policies would be most likely to reduce the rate of inflation?
a. sale of government bonds by the Federal Reserve
b. a reduction in the discount rate
c. an increase in the size of the federal budget deficit
d. a reduction in the required reserves imposed on the banking system
A
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Suppose labor supply declined. Would this affect the aggregate demand curve or the aggregate supply curve? What would be the effect on output and the price level?
What will be an ideal response?
The Secretary of the Treasury
A) serves as Chairman of the Board of Governors. B) serves as a member of the Board of Governors. C) serves as a member of the Federal Open Market Committee. D) does not serve on the Board of Governors.
In the long-run, the aggregate supply curve normally is downward-sloping
a. True b. False Indicate whether the statement is true or false
Which of the following is not likely to result from an increase in the federal minimum wage?
a. an increase in the quantity of low-skill labor supplied b. a decrease in the quantity of low-skill labor demanded c. a decrease in teenage unemployment d. an increase in teenage unemployment