|
|
Question 41
6 H7 [/ m- e4 V( k. F3 o* M oAn economy in long-run equilibrium experiences a cost-push inflation shock. If a feedback rule monetary policy that focuses on the price level is in place, which of the following effects of the monetary policy change is least likely?
! B9 s6 U6 C2 @5 ?3 _% qA) Real gross domestic product decreases and the inflation decreases.' l" f, {$ X1 k3 l5 _
B) The price level decreases and output remains unchanged.
9 A' g3 S6 }. c4 p Q+ @- r* p& yC) The rate of money supply growth decreases.+ N7 k' k6 @, Z* l1 d" S5 i
D) Aggregate demand decreases. 9 ^+ m0 J$ g& o, ]3 j
' ?/ O! I4 ~4 D+ L
Question 42& Q9 g, j+ x" @: @; s( b
The velocity of money is the:6 w, ~- I* D$ N# |$ O; I/ S) G
A) rate at which the price index for consumer goods rises.4 o/ a0 [# ^! w. o9 r* ]0 g( y
B) output expansion multiple of government expenditures.' p6 k5 x' q! A9 Z5 ~0 g0 y
C) average number of times a dollar is used to purchase goods and services.
! Z- Y! ?& _3 B0 TD) number of times a dollar is taken out of the country during a year.
( |- m% X& @+ D3 A) X0 y3 R ' n D# W; `- p3 m9 h( c# ~
Question 43
2 {; G! v* k7 {9 oThe advantages of a proprietorship are least likely to include:6 e x- Z3 p* c# t$ Q
A) ease of formation.
5 o+ ]! e f: i" ]' s3 x/ N2 RB) simple decision making process.
( Q6 T& D+ u7 J5 F' ^$ e+ h0 Q9 g+ cC) single taxation of profits., x& ~, r3 @. B& Q- u7 N G
D) limited liability.
0 S2 k1 l8 I- z1 W$ j* P
( t; }8 g* s% U- b FQuestion 44$ ^( x* N1 d3 M, ^
In theory, the supply of a non-renewable resource is:( W3 m+ E$ Q( p
A) fixed over a specific period of time.
9 S. U& q3 ~5 O M/ NB) perfectly inelastic at a price that equals the present value of the expected next-period price.
, _7 x, j H1 X6 E( ^5 `" WC) perfectly elastic.
% ?! G4 T& e `. n; x+ S$ |% z! f* ND) perfectly inelastic at the price where demand intersects supply.
/ w/ c; ^8 V! }$ K2 p* Y5 o0 }9 B! B1 o- H1 ^7 b0 ]) I
Question 450 Q0 X9 i: j+ X A
Demand-pull inflation would least likely be caused by an increase in:
( K+ ]! v2 Q! e8 z, r9 NA) the prices of raw materials.! @6 d, n0 L6 q& ~8 h U2 X
B) the money supply., k. c, X2 U9 ]6 c9 ]
C) government purchases.9 C% @- L: g* x% h$ G% W3 F
D) foreign incomes.
' s: r" I, Z4 l |
|