1- Suppose the economy currently is in a recessionary gap. The Fed engages in expansionary monetary policy. The impact of expansionary monetary policy will be to:
increase aggregate demand, increase prices, and decrease real GDP.
increase short-run aggregate supply, decrease in prices, and decrease in real GDP.
increase short-run aggregate supply, decrease prices, and increase real GDP.
increase aggregate demand, increase prices, and increase real GDP.
2- The rate of unemployment is calculated as the number of:
people in the civilian labor force divided by the number of unemployed.
employed workers divided by the number of unemployed workers.
unemployed divided by the number of people in the civilian labor force.
unemployed workers divided by the number of employed workers.
3- When the price of a good falls, there will be
no change in quantity demanded.
both an outward shift in the good's demand curve and a movement along the good's demand curve.
an outward shift in the good's demand curve.
a movement along the good's demand curve.
4- Which one of the following is not a characteristic of public goods?
They are indivisible.
Public goods are subject to the principle of rival consumption.
Public goods can be used by increasing numbers of people at no additional cost.
It is difficult to charge people on the basis of how much they use.