If the Fed wanted to shift to a more restrictive monetary policy, it would
a. expand the reserves available to the banking system, which would drive down short term interest rates.
b. reduce the reserves available to the banking system, which would drive down short term interest rates.
c. expand the reserves available to the banking system, which would drive up short term interest rates.
d. reduce the reserves available to the banking system, which would drive up short term interest rates.
D
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An assumption of classical growth theory is that when ________ the population growth rate ________
A) real GDP per person exceeds the subsistence level; increases B) people become more skilled; decreases C) the real wage rate falls; increases D) saving declines; decreases
Describe the pattern of growth rates in real GDP per hour worked in the United States since the early nineteenth century. Has output per hour worked consistently increased at the same rate? Explain
What will be an ideal response?
In arriving at the quantity of output and price of its product, a company
A. chooses either output or price, and consumer demand determines the other. B. has no control over either quantity or price. C. makes two decisions by setting both optimal output and optimal price. D. generally leaves both quantity and price decisions to consumers.
On a graph, an increase in quantity demanded is represented by a:
a. Movement downward and to the right along the demand curve b. Leftward shift of the demand curve c. Rightward shift of the demand curve d. Movement upward and to the left along the demand curve