The pushing-on-a-string analogy makes the point that monetary policy may be better at:
A. controlling demand-pull inflation than cost-push inflation.
B. pulling the aggregate demand curve leftward than pushing it rightward.
C. pulling the unemployment rate downward than pushing the economic growth rate upward.
D. keeping rapid inflation from occurring than reducing it once it has begun.
B. pulling the aggregate demand curve leftward than pushing it rightward.
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Final goods or services used to compute GDP refer to: a. the sum of all wages paid to laborers
b. the factors of production used to produce output. c. goods and services purchased by the ultimate users. d. the value of outstanding shares of stock of manufacturing firms.
Compared to First World countries, developing countries would have _____
a. a higher life expectancy b. higher productivity rates c. lower education levels d. lower birthrates e. a higher rate of private investment
Fiscal policy is purposeful movements in ________ designed to direct an economy.
A. legal structures B. interest rates C. government regulations D. government spending and taxes
What will happen if speculators believe that the relative price of the U.S. dollar is going to rise?
a. They will buy more euros causing the U.S. dollar to appreciate. b. They will buy more U.S. dollars causing the U.S. dollar to appreciate in value. c. Those holding U.S. dollars will convert them to foreign currencies. d. They will buy fewer U.S. dollars causing the U.S. dollar to appreciate in value.