According to the modern view, the impact of expansionary monetary policy will
a. be the same in the long run as in the short run.
b. be the same regardless of whether the effects of the policy are anticipated or unanticipated.
c. initially be an increase in real output if the policy is unanticipated, but in the long run, the primary result will be a higher price level (inflation).
d. initially be an increase in prices if the policy is unanticipated, but in the long run, the primary result will be larger real output.
C
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Economic thinking suggests that a nation in which middlemen are considered to be unproductive seekers of profit, and where their activities are heavily restricted by law, will
a. gain by channeling people's efforts away from unproductive middleman activity toward physical output. b. lose the potential gains from trade that would result from lower transaction costs emanating from middleman activities. c. find that it is richer because the added transaction costs normally imposed by middlemen will be reduced. d. gain because the value of total output will rise.
The Lorenz curve would be a diagonal line if income were distributed equally.
Answer the following statement true (T) or false (F)
The paradox of thrift suggests that
A. "a penny saved is a penny earned." B. as consumption increases, saving decreases. C. the less you pay, the lower the satisfaction. D. attempts to save more may actually reduce total saving.
If the elasticity of demand for sugar cookies is 2.5, then a 10% change in price will lead to a 5% change in quantity demanded.
Answer the following statement true (T) or false (F)