Having government-issued money makes it easier for policymakers to
A. guide and control the economy.
B. keep wages high in certain key industries.
C. completely prevent inflation.
D. keep oil prices stable.
Answer: A
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In New Keynesian macroeconomics, when marginal costs are too sticky to change in proportion to nominal aggregate demand, prices ________ and so menu costs ________ needed to explain business cycles
A) are also sticky, are B) are also sticky, are not C) are still perfectly flexible, are D) are still perfectly flexible, are not
____________________ is when a firm is able to produce along its expansion path
Fill in the blank(s) with the appropriate word(s).
If you knew that two countries had the same level of real GDP per person, what additional piece of information would help you determine in which country people had a better standard of living?
A. The population of each country B. The average level of prices in each country C. The average number of hours worked per week in each country D. The total physical volume of output for each country
If the multiplier is 4, a decrease in spending equal to $80 billion will be accompanied by a decrease in GDP of
A. $480 billion. B. $320 billion. C. $240 billion. D. $84 billion. E. $48 billion.