The Federal Reserve
a. issues new government bonds to finance budget deficits
b. issues bonds for the U.S. Treasury
c. buys and sells already-existing bonds
d. increases the money supply by selling bonds
e. raises and lowers tax rates and disburses money for government purchases and transfer payments
C
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Use the following table to answer the next question. The base year is 2007. Hot DogsBaseballsBottles of SodaYearPriceQuantityPriceQuantityPriceQuantity2005$2.00100$5.0050$2.0010020064.001005.001002.0015020076.001005.001002.0020020088.001508.002004.00200200910.0020010.002004.00250Real GDP (constant dollars) for 2005 equals ________.
A. $1500 B. $1050 C. $650 D. $100
The period of time from 1,000,000 B.C. to 1300 A.D. was a period of
A) moderate economic growth. B) rapid and sustained economic growth. C) no sustained economic growth. D) slow and steady economic growth.
Suppose that last year the unemployment rate was 5 percent and the inflation rate was 2.5 percent. If the natural rate of unemployment is 5 percent, how do you expect inflation to change?
What will be an ideal response?
To promote an economic expansion and an exit from the deflationary environment that the Japanese had been experiencing for the past fifteen years, the "Abenomics" aims at
A) increasing inflation target. B) increasing inflation expectations. C) purchasing long-term bonds. D) all of the above. E) none of the above.