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Question 418 p: r0 J) B- K( g
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?
/ a( q$ |. a FA) Real gross domestic product decreases and the inflation decreases.' s5 |/ K4 v; [% j
B) The price level decreases and output remains unchanged.8 i- u1 k" q3 d6 t: n( f- Y3 s
C) The rate of money supply growth decreases.- d* a$ Z& n+ @5 L* {( q* ~: a& u
D) Aggregate demand decreases. ( H! G$ p6 {) Q- c
; f/ K7 K/ e6 MQuestion 429 J; j8 T9 p: o) T8 A
The velocity of money is the:
4 X6 E3 i ?+ p6 IA) rate at which the price index for consumer goods rises.) @' k7 E! H8 v) k% L `
B) output expansion multiple of government expenditures.& g U3 ^0 s+ I' ~1 l! v8 [% e
C) average number of times a dollar is used to purchase goods and services.
- _0 e5 O. \& J) w4 ND) number of times a dollar is taken out of the country during a year.
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Question 43
5 m6 T6 b0 g( i& H5 ~, @8 T' K- YThe advantages of a proprietorship are least likely to include:/ _' i7 H# f1 v D: X# e! H
A) ease of formation.
! S7 o9 S0 g1 Z4 U- r( kB) simple decision making process.
, ~9 Q' o$ K7 |( @$ WC) single taxation of profits.+ J4 F3 v9 Q* V/ [$ y ?/ Y% B5 q
D) limited liability.
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/ D4 f9 A. d, c' ]. ?8 m% c4 e; XQuestion 442 }+ O2 j/ A6 L1 H
In theory, the supply of a non-renewable resource is:, ~+ W/ } T; N* E" d% a
A) fixed over a specific period of time.
6 ~0 Q, n# S1 a& q2 p6 C" T) f) NB) perfectly inelastic at a price that equals the present value of the expected next-period price.
" O3 V3 E5 g; ^ y0 L6 q. M6 JC) perfectly elastic.) k. m4 U& L) Y8 W; r6 D3 V$ N
D) perfectly inelastic at the price where demand intersects supply.
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: r& m- z+ Q2 I- }3 \) {; f& E; h. NQuestion 45* S7 U- ?0 S$ g Q
Demand-pull inflation would least likely be caused by an increase in:
0 a$ I! C9 }) Z9 p6 y3 QA) the prices of raw materials.
7 {4 s5 Q6 g5 B A- Z7 sB) the money supply.2 B1 U; [9 V# t8 g# \ B
C) government purchases.( @# \( o( x' m4 F9 a' g0 k; ?
D) foreign incomes.
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