Adjusting monetary growth based on previous changes in nominal GDP
A) is relatively easy for the Fed to undertake because the implementation lag is quitelong.
B) could be destabilizing because of the uncertainty of the length of impact lags.
C) is an effective policy because it allows the Fed to influence future macroeconomic performance.
D) raises the price level proportionately.
Ans: B) could be destabilizing because of the uncertainty of the length of impact lags.
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A market structure in which identical goods are produced by several different firms and sold at the market determined price is referred to as:
A) an oligopoly. B) a monopoly. C) perfect competition. D) monopolistic competition.
All else equal, an increase in the price of complementary products for the Apple Watch, such as Sensoria's wearable technology, would
A) shift the demand curve for the Apple Watch to the left. B) shift the supply curve for the Apple Watch to the left. C) shift the demand curve for the Apple Watch to the right. D) shift the supply curve for the Apple Watch to the right.
The adjustment of the ____________ is the rationing mechanism in market economies.
A. price B. competition C. government D. None of the choices are correct.
A family that earns $20,000 a year pays $400 a year in city wage taxes. A family that earns $40,000 a year pays $1,400 a year in city wage taxes. The city wage tax is a ________ tax.
A. progressive B. regressive C. proportional D. benefits-received