Policies focused on putting people to work by having them construct parks would be considered
A. demand-side policies.
B. demand-side and supply-side policies.
C. monetary policies.
D. supply-side policies.
Answer: A
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Which of the following statements best describes what occurs when monetary authorities sell government securities?
A. The size of commercial banks' excess reserves decreases, the money supply decreases, and the interest rates rise, thereby causing a decrease in investment spending and real GDP. B. The size of commercial banks' excess reserves decreases, the money supply decreases, and interest rates rise, thereby causing an increase in investment spending and real GDP. C. The size of commercial bank reserves increases, the money supply increases, and interest rates fall, thereby causing an increase in investment spending and real GDP. D. The size of commercial banks' excess reserves decreases, the money supply increases, and interest rates fall, thereby causing a decrease in investment spending and real GDP.
When calculating GDP, purchases of used goods are
A) included at the original price. B) included by taking the original price and subtracting the (current) used price. C) included at the (current) used price. D) not included. E) included at the original price minus any depreciation.
Inequality is often the result of higher levels of work and productivity
a. True b. False
Scott used $4,000,00 . from his savings account that paid an annual interest of 5% to purchase a hardware store. After one year, Scott sold the business for $4,100,000 . An Economist calculated his profit to be:
a. $300,000 b. $100,000 c. -$100,000 d. -$200,000