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Question 41
7 k; }$ n7 w0 O+ B% |3 Z4 p5 ]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?
1 G9 q1 s! P2 l& d* K0 w3 qA) Real gross domestic product decreases and the inflation decreases.2 d3 x- M9 T6 @' V* G' l$ e3 b
B) The price level decreases and output remains unchanged.
0 q( f8 a2 n5 M% hC) The rate of money supply growth decreases." q/ K& b6 ?; Z3 z1 q
D) Aggregate demand decreases.
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Question 42, V- I9 r4 G, h @
The velocity of money is the:+ C% I( j; V6 O9 C& @- o
A) rate at which the price index for consumer goods rises.
5 \9 g( V- K) A, UB) output expansion multiple of government expenditures.
3 Q9 N% h. P! K5 Q; C3 m$ fC) average number of times a dollar is used to purchase goods and services.
* a) `+ |7 ~9 Q+ Q1 v4 l- F) v+ }D) number of times a dollar is taken out of the country during a year.
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Question 431 `) ]0 |6 O' Q& a
The advantages of a proprietorship are least likely to include:
`6 t7 j ]* \- N* \A) ease of formation.6 ?0 r- p! |8 S" R) Y- T. [$ H
B) simple decision making process.+ B. A. l( u `
C) single taxation of profits.' N" p+ F1 O/ |7 a' D$ K7 p
D) limited liability. 5 E( Y; I" B5 f; f; k( I* r
' l% U4 P) c6 l9 s8 a0 R# ?Question 44
! s( H3 i+ \3 G' I9 z3 P' XIn theory, the supply of a non-renewable resource is:3 ]- v. I- H7 e* D2 [* h
A) fixed over a specific period of time.: B; n$ ~& l- [
B) perfectly inelastic at a price that equals the present value of the expected next-period price.6 N3 O y9 i1 e
C) perfectly elastic.
; M! z% C# h3 O* i: M E$ T" c; sD) perfectly inelastic at the price where demand intersects supply.3 O/ v7 `. {! a/ C
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Question 45# ]7 U2 s% ^. `$ t$ S4 L
Demand-pull inflation would least likely be caused by an increase in:, X$ J/ R! n% P
A) the prices of raw materials.
, o- \7 z5 ^# E+ d! L! ?+ lB) the money supply.
0 X/ F9 L& R9 u! C2 y8 @7 N* k" }- f8 LC) government purchases.6 y8 O) x* u7 [, |' @5 u8 ]1 ] K
D) foreign incomes.
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