|
Question 41
# A3 c# D9 J9 Y7 E2 W( d1 cAn 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?
$ F: T3 @/ n+ M7 L5 C; F( O" w& iA) Real gross domestic product decreases and the inflation decreases.
; X4 R) v. T6 p+ \+ j) m2 s6 ZB) The price level decreases and output remains unchanged.
4 E- E/ \0 R8 p/ F- E/ o# |$ O7 hC) The rate of money supply growth decreases.
- K3 w" O3 X" B2 ^' WD) Aggregate demand decreases.
% y4 d" M" x8 e# G$ q5 k h% T
5 F @" i3 e4 WQuestion 42
+ Z1 H) n/ E v) M( _The velocity of money is the:& ~' ?. P# {3 a; J
A) rate at which the price index for consumer goods rises.
" q, B8 Y) v1 O: m7 J/ M0 s A$ \; [1 TB) output expansion multiple of government expenditures.7 ?- x h- a& W$ D/ d- l
C) average number of times a dollar is used to purchase goods and services.2 v7 r0 `0 y% ~" }5 j8 k' F
D) number of times a dollar is taken out of the country during a year.( j% I% H9 C6 M/ X R
; ^8 y5 K' N7 AQuestion 43
& d$ L2 m7 }: K# z% NThe advantages of a proprietorship are least likely to include:" z( X$ w4 J/ p5 h3 Y; |3 j
A) ease of formation.7 p6 i5 j: o+ f/ @" Q
B) simple decision making process.% l& O3 i }. N. u5 k( V$ {
C) single taxation of profits.
- Z) d( v2 o: u* V, ]* ~# {1 J+ iD) limited liability. # `: |$ ? v* k# m
; J4 \5 A, m, J% A1 u/ ]& |Question 44, d% f" Y) b* v! s; H U
In theory, the supply of a non-renewable resource is:5 E" i R* I) k: r+ Y" H$ ?
A) fixed over a specific period of time. X ^7 A: \. ?. V) |
B) perfectly inelastic at a price that equals the present value of the expected next-period price.* J, _- e1 z" [# N1 U1 D
C) perfectly elastic.7 w0 {% Q% p A6 ~) ^
D) perfectly inelastic at the price where demand intersects supply.
( F6 f) m2 W- N) W( |" ~% X
9 P7 E& p2 n" w0 T/ }8 {2 H- KQuestion 454 l- N2 N+ {# t
Demand-pull inflation would least likely be caused by an increase in:
6 U4 G" O+ f2 Q1 ^( ?A) the prices of raw materials.
& c( W. j. g9 QB) the money supply." {" X/ b! y. {8 x, b9 U
C) government purchases.( A, j7 i) n4 f% B
D) foreign incomes.8 T& K* q- S; P4 i( j% e
|
|