In the early 2000s, car sales in China slowed because the government had been restricting credit growth. This action is consistent with the effects of:
A. contractionary monetary policy but not contractionary fiscal policy.
B. contractionary fiscal or monetary policy.
C. expansionary fiscal policy.
D. contractionary fiscal policy but not contractionary monetary policy.
Answer: A
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If real GDP in a particular year is $80 billion and nominal GDP is $240 billion, the GDP price index for that year is:
a) 100. b) 200. c) 240. d) 300.
Based on the graph showing the effective federal funds rate, the rates in the early 2000s were ______.
a. the lowest in over 40 years
b. the highest in over 40 years
c. about the average for the past 40 years
d. the only negative rates in over 40 years
Suppose that when the price of ice cream increases, Liza decreases her purchase of hot fudge. To Liza
A) ice cream and hot fudge are complements. B) ice cream and hot fudge and substitutes. C) ice cream and hot fudge are normal goods. D) ice cream is a normal good and hot fudge is an inferior good.
Government failure occurs when the government runs a budget deficit.
Answer the following statement true (T) or false (F)