Homework Answers
- The correct answer is option a) The Smoot Hawley Tariff.
- The correct answer is option b) because the Solow model assumes flexible prices and wages.
- The correct answer is option c) because aggregate demand curve is downward sloping.
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What was one of the federal government policy failures in 1930 that contributed to the Great...
42. On a given aggregate demand curve, if the rate of spending growth is 10% and the growth rate of the money suppl...
42. On a given aggregate demand curve, if the rate of spending growth is 10% and the growth rate of the money supply is 2%, then the velocity of money must be growing at: A) 5% B) 8%. 12%. D) 20% 43. According to the quantity theory of money, if both the growth rate of the money supply and the velocity of money are fixed, then a higher inflation rate means: A) a higher real growth rate. B) no change...
Which of the followings is not one of the assumption of the new Keynesian model? Please...
Which of the followings is not one of the assumption of the new Keynesian model? Please choose one: a. Prices are flexible. b. wages are sticky c. expectations are rational D. Prices are sticky 2. The IS curve traces out the combinations of the interest rate and aggregate output for which the money market is in equilibrium, and the LM curve traces out the combinations for which the market for goods and services are in equilibrium. Select one of them: Right...
What two factors are the keys to determining labour productivity? Select one: O a. technology and...
What two factors are the keys to determining labour productivity? Select one: O a. technology and the quantity of capital per hour worked O b. the growth rate of real the growth rate of real GDP and the interest rate O c. the average level of education of the workforce and the price level O d. the business cycle and the growth rate of real GDP Long-run economic growth requires all of the following except Select one: O a. Long-run...
6. When the Federal Reserve Bank changes the money supply and interest erve Bank changes the money supply and inter...
6. When the Federal Reserve Bank changes the money supply and interest erve Bank changes the money supply and interest rates to affect the economy, this is called and it's a policy. a fiscal policy, Keynesian b. growth policy: Classical c. monetary policy: Classical d. monetary policy, Keynesian 7. An example of a long run Classical policy to increase potential GDP is a. the Federal Reserve implementing monetary policy to get the economy out of recession b. the government subsidizing...
Question 100In an open economy with flexible exchange rates, monetary policy affects Not yet answered through changes in the real interest rate and affectsthrough changes in the Points out of 1.0...
Question 100In an open economy with flexible exchange rates, monetary policy affects Not yet answered through changes in the real interest rate and affectsthrough changes in the Points out of 1.00 exchange rate. r Remove flag Select one: A. Consumption and investment; net exports O B. net exports; taxes and saving o c. productivity and growth; consumption O D. taxes and saving; net exports
Question 100In an open economy with flexible exchange rates, monetary policy affects Not yet answered through...
please answer all The fiscal year for the federal government begins on: Select one: O a....
please answer all
The fiscal year for the federal government begins on: Select one: O a. The first Monday in January. O b. October 1st. O c. November 1st. O d. January 1st. Question 22 Not yet answered Points out of 1.00 P Flag question The GDP is: Select one: O a. C + I + G + (EX-IM). O b. The percentage of the labor force that is unable to find employment. O c. The measure of consumer prices...
According to the practice of the Federal Reserve, which of the following interest rates is normally...
According to the
practice of the Federal Reserve, which of the following interest
rates is normally the highest one?
a.
A
and B are always equal, and C is always lower.
b.
The
Federal funds rate target
c.
The
rate paid on commercial banks’ deposits of reserves
d.
The
discount rate
Consider the figure above. The economy is
in short-run equilibrium. Long-run equilibrium will occur at Point
____.
a.
D
b.
B
c.
C
d.
A
China experiences high
rates...
One part of fiscal policy consists of changing government spending, G. Government spending is part of...
One part of fiscal policy consists of changing government spending, G. Government spending is part of aggregate expenditures since AE = C + I + G + X. What will happen to aggregate demand (AD), which is the relationship between AE and the price level, if government spending rises at any price level? Select one: o a. AD will shift down. O b. AD will shift to the left. O C. AD will shift to the right. O d. AD...
10. In the 1970s "Great Inflation", inflation was increased because Policy makers thought potential output was...
10. In the 1970s "Great Inflation", inflation was increased because Policy makers thought potential output was higher than it actually turned out to be and policy shifted the AD curve to the left Policy makers thought potential output was lower than it actually turned out a. b. to be and policy shifted the AD curve to the left Policy makers thought potential output was lower than it actually turned out to be and policy shifted the AD curve to the...
Residential investment includes spending by firms on office buildings. Select one: O True O False The...
Residential investment includes spending by firms on office buildings. Select one: O True O False The GDP deflator is a measure of the Select one: O a. average level of prices of intermediate goods and services in the economy. O b. average level of prices of final goods and services in the economy. O c. total production of the economy unadjusted for inflation. O d.) total production of the economy adjusted for inflation. To examine how the total production of...
42. On a given aggregate demand curve, if the rate of spending growth is 10% and the growth rate of the money supply is 2%, then the velocity of money must be growing at: A) 5% B) 8%. 12%. D) 20% 43. According to the quantity theory of money, if both the growth rate of the money supply and the velocity of money are fixed, then a higher inflation rate means: A) a higher real growth rate. B) no change...
What two factors are the keys to determining labour productivity? Select one: O a. technology and the quantity of capital per hour worked O b. the growth rate of real the growth rate of real GDP and the interest rate O c. the average level of education of the workforce and the price level O d. the business cycle and the growth rate of real GDP Long-run economic growth requires all of the following except Select one: O a. Long-run...
6. When the Federal Reserve Bank changes the money supply and interest erve Bank changes the money supply and interest rates to affect the economy, this is called and it's a policy. a fiscal policy, Keynesian b. growth policy: Classical c. monetary policy: Classical d. monetary policy, Keynesian 7. An example of a long run Classical policy to increase potential GDP is a. the Federal Reserve implementing monetary policy to get the economy out of recession b. the government subsidizing...
Question 100In an open economy with flexible exchange rates, monetary policy affects Not yet answered through changes in the real interest rate and affectsthrough changes in the Points out of 1.00 exchange rate. r Remove flag Select one: A. Consumption and investment; net exports O B. net exports; taxes and saving o c. productivity and growth; consumption O D. taxes and saving; net exports
Question 100In an open economy with flexible exchange rates, monetary policy affects Not yet answered through...
please answer all
The fiscal year for the federal government begins on: Select one: O a. The first Monday in January. O b. October 1st. O c. November 1st. O d. January 1st. Question 22 Not yet answered Points out of 1.00 P Flag question The GDP is: Select one: O a. C + I + G + (EX-IM). O b. The percentage of the labor force that is unable to find employment. O c. The measure of consumer prices...
One part of fiscal policy consists of changing government spending, G. Government spending is part of aggregate expenditures since AE = C + I + G + X. What will happen to aggregate demand (AD), which is the relationship between AE and the price level, if government spending rises at any price level? Select one: o a. AD will shift down. O b. AD will shift to the left. O C. AD will shift to the right. O d. AD...
10. In the 1970s "Great Inflation", inflation was increased because Policy makers thought potential output was higher than it actually turned out to be and policy shifted the AD curve to the left Policy makers thought potential output was lower than it actually turned out a. b. to be and policy shifted the AD curve to the left Policy makers thought potential output was lower than it actually turned out to be and policy shifted the AD curve to the...
Residential investment includes spending by firms on office buildings. Select one: O True O False The GDP deflator is a measure of the Select one: O a. average level of prices of intermediate goods and services in the economy. O b. average level of prices of final goods and services in the economy. O c. total production of the economy unadjusted for inflation. O d.) total production of the economy adjusted for inflation. To examine how the total production of...
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