In recent years, the Fed has communicated changes in its monetary policy by announcing changes in its policy targets for the:
A. growth of the money supply.
B. federal funds rate.
C. prime interest rate.
D. U.S. dollar-foreign currency exchange rate.
B. federal funds rate.
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At point S, the economy is operating at approximately _______ unemployment?
The above table shows Tammy's total utility from videos and CDs. If Tammy has $110 to spend on videos and CDs and if the price of a video is $10 and the price of a CD is $20, then Tammy maximizes her utility by purchasing
A) 3 CDs and 5 videos. B) 5 CDs and 1 video. C) 4 CDs and 3 videos. D) none of the above.
Suppose that the supply and demand of wheat depend on the price of wheat (p), the amount of annual rainfall (r), and the level of disposable consumer income (I)
The equations describing the supply and demand curves are given by: QS = 20r + 100p QD = 4000 - 100p + 10I Sketch a graph of the supply and demand curves for wheat and show the effects of an increase in the quantity of rainfall. How does each curve shift (if at all) from the increase in rainfall? What does this shift do to the equilibrium price and quantity (increase/decrease)?
In the long-run, if the economy is operating at the full employment level, the equilibrium level of real GDP is determined solely by the:
a. level of unemployment in the economy. b. rate of inflation in the economy. c. real interest rate in the economy. d. aggregate supply curve of the economy. e. aggregate demand curve of the economy.