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Question 413 y: V. q% A& }4 _6 |
An 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?* u% ~% w, g3 h7 U0 ~5 m
A) Real gross domestic product decreases and the inflation decreases.
( X! T8 p# x+ D! ~1 Z DB) The price level decreases and output remains unchanged.
# e" t. o9 b- I- Q gC) The rate of money supply growth decreases.9 ]/ v4 I2 j! U8 e) F
D) Aggregate demand decreases.
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Question 429 {0 @- E' @& p. c5 }
The velocity of money is the:
1 S( A H& b0 u7 g/ E- k9 n6 TA) rate at which the price index for consumer goods rises.8 k8 g3 k2 y& p. _$ u* j5 d7 e
B) output expansion multiple of government expenditures.
3 v" d D4 N. e$ {9 r h" l/ W$ TC) average number of times a dollar is used to purchase goods and services.
5 f" w2 }: G! [7 Z% H* b% q5 fD) number of times a dollar is taken out of the country during a year.3 ~2 ]8 E8 D" B+ M1 N
: x1 B, c+ P6 n8 P2 QQuestion 43+ |0 H9 e, m7 }% V+ O9 i+ A! L* |3 y# q% s
The advantages of a proprietorship are least likely to include:
: y' _% j7 X& P k) S Y4 t; F1 @A) ease of formation.
. J4 \. x6 O }3 f5 z1 c7 vB) simple decision making process.; T4 Z ]- o+ ~# Y
C) single taxation of profits.
6 @; L% B: @" {' pD) limited liability. + _- _$ {; E7 i8 D+ o% F5 X
( r( ]; s; i6 M/ s2 b) t( IQuestion 44
2 H: J" x+ b& N9 m& T% r3 bIn theory, the supply of a non-renewable resource is:
0 s- H9 O) \! NA) fixed over a specific period of time.
, l1 C7 S' H5 S; z7 J4 T: `B) perfectly inelastic at a price that equals the present value of the expected next-period price.. y* R' Z4 E) s4 g& V
C) perfectly elastic.& l' n- `0 P" S6 t* X+ ?
D) perfectly inelastic at the price where demand intersects supply.
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Question 45; o! j, X" U+ h# u& _
Demand-pull inflation would least likely be caused by an increase in:4 E. g1 T0 b! `9 d4 ]
A) the prices of raw materials.4 k% \, {$ v. }) |. v& V9 }3 K
B) the money supply.8 i2 t- ?% ^& _6 w. o6 g5 z5 {
C) government purchases.
; g3 `6 _/ q9 S+ j2 V. dD) foreign incomes.( y9 R& [4 P4 q' i7 u: c
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