Why does the Federal Reserve alter monetary policy?
(A) To provide services to member banks.
(B) To enable banks to clear checks.
(C) To lessen the effect of natural business cycles.
(D) To regulate the banking industry.
Answer: to lessen the effect of natural business cycles
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In the Keynesian model, when is the economy in short-run equilibrium?
a. when there is no inflation b. when there is full employment c. when there is a balanced federal budget d. when total spending (demand) is equal to production (supply)
Trade protectionism (barriers) for a product will result in:
Lower prices for imports of that product Higher prices for imports of that product Higher prices for domestic producers of that product Lower prices for foreign producers of that product
The total civilian labor force is comprised of
A. all individuals over 16 years of age, whether or not they work or are seeking work. B. only full-time employed individuals between the ages of 18 and 55. C. only the employed. D. the unemployed and the employed.
Which of the following shows the feasible combinations of two goods that a consumer could afford given her money income?
A. the budget constraint B. the indifference map C. the price consumption curve D. the income consumption curve