Which of the following is NOT mentioned as a difficulty the Fed faces when trying to affect aggregate demand in the short run?
A. Lack of direct control
B. Lagged results
C. Sticky wages and prices
D. Incomplete data
Answer: C. Sticky wages and prices
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Refer to Figure 13-1. Ceteris paribus, an increase in the growth rate of domestic GDP relative to the growth rate of foreign GDP would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
According to the text, there is no such thing as a free lunch because
A. The producer must charge something to cover the cost of production. B. The government must raise taxes to pay for the lunches. C. No one would pay for lunch anymore if they could get it for free. D. Resources used to produce the lunch could be used to produce other goods and services.
Figure 7.6 shows prices, demands, and cost data for the only restaurant in a small town. Compared to the profit under the single price policy, how much additional profit does the restaurant earn under the senior discount policy of a $7 senior price and a $10 non-senior price?
A. $920 B. $580 C. $300 D. $280
The unemployment rate in an economy is 6%. The total population of the economy is 290 million, and the size of the civilian labor force is 150 million. The number of unemployed workers in this economy is
A. 12 million. B. 6 million. C. 24 million. D. 9 million.