In the short run, expansionary monetary policy ________ real gross domestic product (GDP), ________ unemployment, and ________ the price level.
Fill in the blank(s) with the appropriate word(s).
raises; lowers; raises
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A British investor buys $40,000 worth of stocks in the U.S. stock market. For the U.S. we would predict ________.
A. aggregate demand will fall B. aggregate supply will rise C. aggregate demand will rise D. aggregate supply will fall
The Bureau of Labor Statistics does not count discouraged workers as unemployed. Suppose discouraged workers were counted as unemployed. Explain how the unemployment rate and the labor force participation rate would change
What will be an ideal response?
If a woman is pregnant and her boss must decide to give a promotion that entails a move to another city in a time frame that coincides with the expected birth of her child then the boss
A. can chose to by-pass her and give the pregnancy as a legally-acceptable reason. B. can chose to by-pass her and give the pregnancy as a legally-acceptable reason, as long as the next promotion goes to her. C. must ignore the pregnancy in making the decision of whom to promote. D. must give her the promotion, regardless of other candidates.
In Figure 23.3, diagram "a" presents the cost curves that are relevant to a firm's production decision, and diagram "b" shows the market demand and supply curves for the market. Use both diagrams to answer the following question: If the market demand curve is D2 in Figure 23.3, then in the long run,
A. There are zero economic profits, so there will be no entry or exit. B. There are zero economic profits, so firms will exit. C. Economic profit is less than zero, and firms will exit. D. Economic profit is greater than zero, and firms will expand production.