During the Vietnam War, monetary policy officials reacted to the increases in aggregate demand resulting from military expenditures by:
A. dramatically slowing money growth.
B. shifting the monetary policy reaction curve to the left.
C. not shifting the monetary policy reaction function.
D. keeping the same inflation target and raising the real interest rates.
Answer: C
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According to the Application, as new products are constantly invented and introduced on the market,
A) the bias in the CPI can be large. B) the bias in the CPI will eventually disappear. C) the bias in the CPI will remain virtually unchanged. D) the bias in the CPI tends to become smaller.
In the mid-1830s, the U.S. entered an inflationary period that culminated in the depression of 1839-1843 . Contemporary economic historians attribute this economic downturn to
a. the demise of the Second Bank of the U.S. in 1832. b. over-issue of gold coins by the U.S. Mint. c. over-expansion by the manufacturing sector. d. external forces, including large inflows of specie from Mexico and Europe.
During the recent? recession, many people were looking for jobs and companies were able to hire employees for a lower wage. This is an example of how the? ________ environment can affect business.
A. sociocultural B. technological C. global business D. domestic business E. Economic
Which of the following illustrates a macroeconomic question?
A. Should the salaries of financial executives be regulated by the government? B. Are increasing wage demands by workers contributing to price inflation? C. What is the least costly way to produce automobiles and trucks in the United States? D. Will the introduction of a new computer chip change the demand for computers?