The “Taylor rule” for monetary policy provides the Fed with a
A. mechanical prescription for monetary policy.
B. benchmark to guide policy decisions.
C. time frame for discount rate changes.
D. rule for changing the M1 money supply.
Answer: B
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Use the following graph for a perfectly competitive firm generating a loss in the short run to answer the next question.
Which area in the graph represents the loss generated by the firm?
A. bcde B. 0beg C. abef D. acdf
When an inflationary gap exists, the job prospects of new college graduates are
a. very dim. b. somewhat encouraging. c. worse in comparison to a recessionary gap. d. excellent.
Short-run supply determinants include
A. Number of buyers. B. Consumer preferences. C. Technology. D. Income.
Figure 19-1
?
Of the graphs in Figure 19-1, which one shows the effects of an economic boom in the United States and a depreciation of the dollar?
A. 1 B. 2 C. 3 D. 4