Figure 14-4
In , an unanticipated shift to a more restrictive monetary policy will shift
a.
AD to the right and temporarily increase real GDP.
b.
AD to the left and temporarily reduce real GDP.
c.
AD to the right and SRAS to the left and lead to higher prices (inflation).
d.
both AD and SRAS to the right and lead to an increase in real GDP.
b
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Betty and Wilma are the only two cashiers employed at a retail store. Each of them works the same 40 hours per week. By manually entering the price of each product purchased into the cash register, Betty can check out 20 customers and Wilma can check out 30 customers per hour. The store owner replaces the old cash registers with new ones that automatically scan product prices into the register. With the new cash registers, Betty and Wilma can each check out 60 customers per hour. Their average labor productivity as a team before the new cash registers were introduced was ________ customers per hour and ________ customers per hour after the new machines were installed.
A. 50; 60 B. 50; 120 C. 1,000; 2,400 D. 25; 60
Inflation costs are minimized under which inflation rate?
a. -20 percent b. 5 percent c. 15 percent d. 575 percent
The national debt is
A) the sum of the personal debt of all citizens in the United States. B) the cumulative effect of all past budget deficits and surpluses of the federal government. C) the difference between a nation's exports and imports of goods and services. D) equal to the current size of the budget deficit.
If firms in a monopolistically competitive industry are making an economic profit,
A. price is higher than marginal cost. B. new firms will enter the industry. C. economic profit will fall in future periods. D. all of the above E. none of the above