|
Question 41
7 Q' }- ]& u' UAn 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?( O/ L' x1 J, ~" M, @/ L
A) Real gross domestic product decreases and the inflation decreases.( z* S+ V5 W: v) A1 `$ W
B) The price level decreases and output remains unchanged.3 @. F5 s4 B6 _% K# B+ P# I7 {
C) The rate of money supply growth decreases.
" s4 D( `; @0 p) e" {- sD) Aggregate demand decreases. - v% B. x7 e( B% s9 i
6 [- |6 f# p% K/ z" G& jQuestion 42
/ `# {$ X+ N: U% m1 s- D% g3 MThe velocity of money is the:
( l# q6 s. W4 B9 }A) rate at which the price index for consumer goods rises.
! [5 @, M8 }- |B) output expansion multiple of government expenditures. I0 B2 t7 Q9 j( k" z1 p
C) average number of times a dollar is used to purchase goods and services.
. w& V) ^7 r- C4 p, V4 ED) number of times a dollar is taken out of the country during a year.
2 u6 w e1 [; Y& X9 r0 P 4 I& G" B, @* W7 W6 f( h S
Question 43, c% \, ?0 Q y. F% U) {
The advantages of a proprietorship are least likely to include:
6 n2 F1 t- x) e( JA) ease of formation.
9 n% `0 b1 A: N8 R% hB) simple decision making process.1 ` C' H; Z, N: J, |1 m
C) single taxation of profits.- @; [; e( e' N3 d" i! H
D) limited liability.
, \" |( A* ^9 h5 |; D * V( M# n- U$ `' n
Question 44. R9 H) h# d* u; X1 P0 i) j+ @
In theory, the supply of a non-renewable resource is:+ o6 m# u& J6 w i. ~ b
A) fixed over a specific period of time.
+ s- L0 V, k5 Y" e3 I" _& p n. p* IB) perfectly inelastic at a price that equals the present value of the expected next-period price.8 w6 R1 X" l" n; s
C) perfectly elastic.3 W( V( v+ \$ |, _" m, c- G
D) perfectly inelastic at the price where demand intersects supply.. w; t$ D! k" a7 h2 d/ g# W
5 X! ?6 T3 J) {# x& {: V/ U5 p9 Y
Question 45
' D# j6 q- {' E( S h3 MDemand-pull inflation would least likely be caused by an increase in:
8 d4 l& }$ V' c+ C( QA) the prices of raw materials.5 Y+ ]' {$ _/ n* G- k: Z
B) the money supply.
$ a7 K$ @7 V3 [7 p* AC) government purchases.
8 A' M7 L/ F+ LD) foreign incomes.( i- j4 _5 n8 G2 t( z: r
|
|