|
|
Question 41
* e" o- f7 O( B2 _4 a# fAn 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?, P2 h$ v2 @( k# A# g
A) Real gross domestic product decreases and the inflation decreases.6 A& ~3 |5 N5 y( Q. J' v1 w9 [
B) The price level decreases and output remains unchanged.0 J" i- P. ~- ?7 {' R* C7 l
C) The rate of money supply growth decreases.
6 P) \8 T/ M, a- i" FD) Aggregate demand decreases. / N2 }, _; f! T& s
+ ?5 g5 p6 Q; t: d
Question 42( O C' O' [0 u
The velocity of money is the:/ I! F/ ~3 }- I9 j: ~. u) p
A) rate at which the price index for consumer goods rises.) r, D6 l5 g' \8 i+ c) h1 {& c
B) output expansion multiple of government expenditures.
, L9 P9 H2 N+ _5 U) lC) average number of times a dollar is used to purchase goods and services.7 s9 R ?& N# S
D) number of times a dollar is taken out of the country during a year.0 U+ f! F! n2 E' v$ W+ i
1 {$ [; {) C3 e9 q; I: FQuestion 43
. G0 ^( r$ k/ `9 Y- bThe advantages of a proprietorship are least likely to include:
! s0 ]( s7 z/ T Z3 B- BA) ease of formation.
G: a6 D1 h; @; w- ]& tB) simple decision making process.$ @ S" e) m" i/ O3 M6 g
C) single taxation of profits.
6 z i6 K" o/ A; l& M vD) limited liability. ; T) F6 S6 Y/ k3 O) e
/ u, i8 p/ M- [& i; p! i8 OQuestion 44
' p& n" c6 b5 {9 w2 ]" w VIn theory, the supply of a non-renewable resource is:
# E1 T, u: s5 J! S! hA) fixed over a specific period of time.! [9 e- B* W9 o* A
B) perfectly inelastic at a price that equals the present value of the expected next-period price.# n) B, t I9 M! Z8 U# _2 c) j
C) perfectly elastic.
, u" H- x" P T9 d* yD) perfectly inelastic at the price where demand intersects supply.) m6 l; h1 F" j$ Q
( v, y) |7 [) l! ~+ L* C
Question 45* r v. O0 N# k+ d9 K `6 d0 F
Demand-pull inflation would least likely be caused by an increase in:1 B5 w4 G9 X* ]; n
A) the prices of raw materials.
6 G1 B0 p2 ]7 ~7 k' p+ qB) the money supply." V3 m! E! m7 F- s% f- E
C) government purchases.2 t1 z, d6 ^ S' r" F( r% a' c% q
D) foreign incomes.
! R6 Z8 C$ w: | _7 P |
|