If workers and firms know that the Federal Reserve is following an expansionary monetary policy, workers and firms will expect inflation to ________ and will adjust wages so that the real wage ________
A) decrease; decreases B) increase; remains unchanged
C) increase; increases D) increase; decreases
B
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Use the following table, which shows a firm's production, output price, and various quantities of labor (workers) employed, to answer the next question.WorkersTotal Output per DayPrice of Good210$103151041910522106241072510What is the marginal revenue product of the fifth worker?
A. $40 B. $30 C. $20 D. $10
What can we predict about the effect on consumption of an increase in government spending?
A. Consumption will increase by the amount of the government spending. B. Consumption will increase by an amount equal to the MPC times the change in real GDP. C. Consumption will not rise as government spending rises. D. Consumption will increase by an amount equal to the MPC times the change in government spending.
Refer to the information above. If an economy can raise its annual real GDP growth rate from 1.8 percent to 2.4 percent, its real GDP doubling time is reduced by ________ years
A) 30 B) 24 C) 10 D) 43.2
The main policy advice given by the IMF to East Asian countries facing the financial crises of 1997/1998 was
A) raising their domestic interest rates to stabilize the collapsing currencies. B) using their monetary and fiscal policies alone. C) use capital controls. D) adopting a flexible exchange rate system. E) adopting a fixed exchange rate system.