If the economy is experiencing an inflationary GDP gap, ___ monetary policy might be used to ____ aggregate demand and ____ the overall price level.
A. expansionary; decrease; decrease
B. expansionary; increase; decrease
C. contractionary; decrease; decrease
D. contractionary; decrease; increase
C. contractionary; decrease; decrease
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Based on this model, it is apparent that there is a
Use thefollowing information for any or all of Questions 16 through 18. Suppose the marginal benefits and marginal costs of tire production in the U.S. are modeled as follows, where Q is in millions: MSB = 12 – 0.4Q MPB = 12 – 0.3Q MSC = MPC = 2 + 0.1Q a. negative production externality b. positive external benefit c. consumption externality measured as MEB = – 0.1Q d. negatively sloped MEC function
Approximately how much of the income in the United States is earned by workers in the form of wages and fringe benefits?
a. 25 percent b. 50 percent c. 67 percent d. 90 percent
The stagflation in the United States during the 1974–1975 period can be attributed to
A. increases in real GDP due to high levels of defense spending. B. tight monetary and fiscal policies of the Nixon–Ford administrations. C. rapid increases in petroleum prices, poor harvests, and the removal of wage and price controls. D. budget deficits by the federal government and increasing trade deficits by the United States.
For consumers, most market activity can be explained by the goal of:
A.) Charitable responsibility. B.) Maximizing income. C.) Profit maximization. D.) Maximizing happiness.