In which of the following situations would the Fed conduct contractionary monetary policy?
A) The Fed is worried that deflation will become a problem.
B) The Fed fears that unemployment is climbing above the natural rate.
C) The Fed believes that aggregate demand was growing too slowly to keep up with potential GDP.
D) The Fed is concerned that aggregate demand would continue to exceed the growth in potential GDP.
D
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The amount of autonomous consumption in an economy is measured by the:
a. the intercept of the consumption function when disposable income is positive. b. the intercept of the consumption function where actual consumption is above the 45-degree line. c. the intercept of the consumption function when disposable income is zero. d. the intercept of the consumption function where actual consumption is below the 45-degree line. e. the intercept of the consumption function when disposable income is negative.
The exchange of one good for another, without the use of money, is known as
a. acquisitive exchange b. liquidity c. volatility d. barter e. currency
If the demand for gadgets increases as a result of a decrease in the price of widgets, the widgets and gadgets are:
A. elastically demanded. B. substitute goods. C. normal goods. D. complementary goods.
Economies of scale
A. do not arise in oligopolistic industries. B. can exist but fail to create barriers to entry in oligopolistic industries. C. can exist but are rare in oligopolistic industries. D. are commonplace and often a barrier to entry in oligopolistic industries.