During the 2007–2008 recession the U.S. economy moved from E1 to e2 to e3. Which of the following statements is accurate?
a. The move from E1 to e2 was facilitated by a shift from SRAS2 to SRAS1.
b. While the economy was at e2 there was an inflationary gap.
c. The move from e2 to e3 was facilitated by a shift from AD2 to AD3.
d. While the economy was at e3 unemployment was unusually low.
c. The move from e2 to e3 was facilitated by a shift from AD2 to AD3.
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If real GDP per capita doubles between 2005 and 2020, what is the average annual growth rate of real GDP per capita?
A) 4.7% B) 10.5% C) 15% D) 21%
An increase in first-period income results in
A) an increase in first-period consumption, an increase in second-period consumption, and an increase in saving. B) an increase in first-period consumption, a decrease in second-period consumption, and an increase in saving. C) a decrease in first-period consumption, an increase in second-period consumption, and an increase in saving. D) an increase in first-period consumption, an increase in second-period consumption, and a decrease in saving.
For barter to occur, there has to be a double coincidence of wants
Indicate whether the statement is true or false
The most effective and frequently used tool the Fed has to increase or decrease the economy's money supply is
a. open market operations b. changes in the legal reserve requirement c. changes in the discount rate d. changes in the federal funds rate e. moral suasion