In the DMP model, a decrease in the unemployment insurance benefit
A) increases the unemployment rate.
B) reduces labor market tightness.
C) reduces the unemployment rate.
D) reduces the vacancy rate.
C
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The different shapes of the aggregate supply curve:
A. Determine the level of reserves held by the banking system. B. Result in the Fed's need for total control of the money supply. C. Determine the impact of monetary policy on price level and output. D. Explain why the Fed must respond to market instability.
If the money multiplier decreased from 20 to 12.5, then
a. the Fed increased the reserve ratio from 5 percent to 8 percent. b. the Fed increased the fed funds rate from 5 percent to 8 percent. c. the Fed decreased the reserve ratio from 8 percent to 5 percent. d. the Fed decreased the fed funds rate from 8 percent to 5 percent.
Which of the following is one of the fundamental sources of long-run economic growth?
A. An reduction in local purchasing of the country's exportable products B. An increase in demand for the country's importable product C. An improvement in production technologies D. An expansion of foreign gross domestic product (GDP)
Wage and property income before transfers and taxes is known as market income.
Answer the following statement true (T) or false (F)