|
|
Question 41
. @' B A, K s6 ^6 nAn 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?0 h' B" X$ T( A$ I2 Z4 A
A) Real gross domestic product decreases and the inflation decreases.1 k" K8 j4 ?$ Z/ N! O
B) The price level decreases and output remains unchanged.
; g3 Y4 k _' @8 |2 JC) The rate of money supply growth decreases.% |( o3 t0 u! y; d
D) Aggregate demand decreases.
: H' h4 _( J8 R 8 p5 C: x4 N" I* z
Question 42
% a0 h& v& D" W4 M- AThe velocity of money is the:% x4 o: e2 [4 v0 L
A) rate at which the price index for consumer goods rises.
; O# h; K7 X! |9 l# Y; H2 lB) output expansion multiple of government expenditures.
% i3 I; h0 d3 F; N! K; NC) average number of times a dollar is used to purchase goods and services.
) B, }6 [, A( D: C6 {( T9 eD) number of times a dollar is taken out of the country during a year.2 w. ~ H# V# Q* }8 s
' Q, \6 e0 t+ b! jQuestion 43
$ |4 F8 A) M1 f; h- [The advantages of a proprietorship are least likely to include:4 i: l" {* L }5 M7 `5 R
A) ease of formation.' P# U/ C- |* g" j
B) simple decision making process.
3 b+ ~" b$ A+ s% {1 ?& m! W0 tC) single taxation of profits.+ j+ ]6 {( W; u& K
D) limited liability.
: @5 P$ A. X# o9 K' ~
# {) z5 X7 i! ~! G* n* C% ZQuestion 44; k4 n0 U% [, r4 P7 x8 J+ [& y- P
In theory, the supply of a non-renewable resource is: K1 n5 \' ?+ q/ h/ @& ~) p/ R! A
A) fixed over a specific period of time.1 p3 C2 b' m/ A) B' U8 U0 i
B) perfectly inelastic at a price that equals the present value of the expected next-period price.0 J. e) Z& {5 d2 \( C V; J9 k
C) perfectly elastic.
1 K2 k j9 m- |8 {# UD) perfectly inelastic at the price where demand intersects supply.
. I3 M8 @: r3 y% d4 V& b3 }5 Q9 y6 @
Question 45
% m# q+ A# F! F& b6 W+ CDemand-pull inflation would least likely be caused by an increase in:. L7 `/ }! H3 @- r. D9 _7 S% g
A) the prices of raw materials.) Y0 |" r1 Y9 i! W) R! [
B) the money supply. C y" p0 F8 v" _9 q) x. T
C) government purchases.0 h& O" l, ^; `' v6 p( L
D) foreign incomes." V1 F3 u' F% o
|
|