Question
Could someone help with the following 5 questions? Expansionary monetary policy: a. increases the interest rate and increases the price level. b. increases the interest
Could someone help with the following 5 questions?
- Expansionary monetary policy:
a. increases the interest rate and increases the price level.
b. increases the interest rate and decreases the price level.
c. decreases the interest rate and increases the price level.
d. decreases the interest rate and decreases the price level.
2. A year-long drought that destroys most of the summer's crops would be considered:
a. a short-run supply shock.
b. a short-run demand shock.
c. a long-run demand shock.
d. a long-run supply shock.
3.The government might increase its spending to end a recession because:
a. the economy experiences lower prices at the long-run equilibrium.
b. the economy enjoys a higher level of output in the long run.
c. allowing the short-run aggregate supply to adjust back to the long-run can take a long time.
d. None of these justify why the government might change its spending to end a recession.
4.If an economy produces 1,000 units of output with a price level of $1 and the money supply (M) is $500, velocity is:
a. 50
b. 500
c. 2
d. 5
5.With what measure does cyclical unemployment tend to move?
a. Inflation
b. Nominal GDP
c. Per capita GDP growth rate
d. GDP deflator
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