Refer to the diagrams. The numbers in parentheses after the AD 1 , AD 2 , and AD 3 labels indicate the levels of investment spending associated with each curve. All figures are in billions. If the money supply is MS 1 and the goal of the monetary authorities is full-employment output Q f , they should:
A. increase the money supply from $80 to $100.
B. increase the money supply from $80 to $120.
C. maintain the money supply at $80.
D. decrease the money supply from $80 to $60.
A. increase the money supply from $80 to $100.
You might also like to view...
Assume there are only two goods in the economy, apples and bananas. In 2018, 2,000 apples were sold at $1 each and 8,000 bananas at $0.60 each. In 2019, the price of apples rose to $1.5 and the quantity rose to 2,200; the price of bananas rose to $0.80 and the quantity sold rose to 8,500. Calculate real GDP in 2019 using 2018 as the base year.
What will be an ideal response?
Monetarists argue that the relationship between:
A. The quantity of money the public wants to hold and the level of GDP is not stable B. The quantity of money the public wants to hold and the level of GDP is stable C. The quantity of money the public wants to hold and the level of saving is stable D. Velocity and the interest rate varies directly
The longer is the interval between firms' price adjustments
A) the smaller the output effect of a given change in the money supply. B) the longer the interval that the horizontal new Keynesian aggregate supply curve will remain in position. C) the new Keynesian aggregate supply curve will become steeper. D) the shorter the interval the horizontal new Keynesian aggregate supply curve will remain in position.
80% of the total number of people in Genovia with health insurance are above 40 years of age. Which of the following economic concepts helps in explaining this fact?
A) The concept of negative externalities B) The concept of adverse selection C) The concept of free riding D) The concept of positive externalities