|
|
Question 41
/ k% t" @% D+ |* ]0 |8 HAn 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?3 H! l6 ] S4 R0 |& C
A) Real gross domestic product decreases and the inflation decreases.: M8 i& x2 s: d# O8 A- y
B) The price level decreases and output remains unchanged.
' q8 ~$ S: H& [% s1 K: l& t2 O; OC) The rate of money supply growth decreases.
; m f( k+ X Z3 O9 JD) Aggregate demand decreases.
4 b! p2 M7 J5 ?9 g5 g5 r% K2 x ' H/ r1 T3 m j4 |0 ?( V
Question 42/ |% B) V& A2 [$ N t+ H- k
The velocity of money is the:: L" m: P; A5 N2 g2 K& s4 d
A) rate at which the price index for consumer goods rises.
; C- I; p2 s! Z+ z! l, P* qB) output expansion multiple of government expenditures.
7 q2 S, i8 r% X3 dC) average number of times a dollar is used to purchase goods and services.4 c% N# v, \# n$ L( g8 N
D) number of times a dollar is taken out of the country during a year.
0 A% ~, W+ p; G5 I: w! N0 H ( I4 x4 @/ P7 u- s, K& F
Question 43" O' ~% h. i1 O& E# o6 E6 w0 d" t1 e
The advantages of a proprietorship are least likely to include: S7 @" ]# U$ z, O n
A) ease of formation.* @- I5 C0 \0 v
B) simple decision making process.
4 } { Q! u- [7 w7 b* M! F6 P2 \C) single taxation of profits.. V7 \: ?- y8 f2 u: ~) F) f' O
D) limited liability.
3 x9 @: L) z4 s7 S. [3 h8 G7 I M
! G7 [" @5 d( A* ^4 dQuestion 447 M4 n8 }' w2 ]
In theory, the supply of a non-renewable resource is:
. D; [ X7 d9 H5 J( l( ZA) fixed over a specific period of time./ J* e# A& v& ]. v: Z( I- P1 U
B) perfectly inelastic at a price that equals the present value of the expected next-period price.% @+ W+ l; ?9 P& K
C) perfectly elastic.
) t2 d4 ?* v6 _# jD) perfectly inelastic at the price where demand intersects supply.+ b" C9 U5 o4 I: U
7 Y& S' \: Q3 L! nQuestion 45
' w+ h- B7 e4 z, p) r* J- UDemand-pull inflation would least likely be caused by an increase in:
0 t3 U5 V8 J3 l" pA) the prices of raw materials.
0 _6 m8 m9 O6 ^B) the money supply.
$ C7 I6 J5 p! x( R% YC) government purchases.
; D8 T% Y+ r) V( c; T3 AD) foreign incomes.7 E) u# T m5 p# h: \
|
|