When the Federal Reserve conducts open-market operations to increase the money supply, it
a. redeems Federal Reserve notes.
b. buys government bonds from the public.
c. raises the discount rate.
d. decreases its lending to member banks.
b
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Refer to Table 12-1. The firm will not produce in the short run if the output price falls below
A) $8. B) $4. C) $3.20. D) $2.80.
A tax on sellers:
A. shifts the demand curve left by the amount of the tax. B. shifts the demand curve down by the amount of the tax. C. shifts the supply curve up by the amount of the tax. D. shifts the supply curve left by the amount of the tax.
What will happen to the demand for reserves if real GDP increases?
a. It will shift outward. b. It will shift inward. c. It will remain unchanged. d. It depends on what happens to interest rates.
If the unemployment rate fell from 8 percent to 6 percent, the cyclical unemployment rate
A. Went up. B. Stayed the same. C. Fell by less than 2%. D. Fell by 2%. E. Fell by more than 2%.