- •The International College of Economic and Finance
- •Increase Decrease
- •It includes purchases of common stock
- •A consumer price index (cpi) value of 90 means that prices are
- •10 Percent lower than they were in the base year
- •Decrease Decrease
- •No change Decrease
- •A change in the general price level does not mean a change in relative domestic prices, so the substitutability of goods is different.
- •Total leakages equal total injections.
- •Unemployment
- •They have different lag times between implementation of a policy and the effects of implementation on aggregate demand.
- •A budget surplus and a decrease in public debt
- •A recent college graduate who has been interviewing for jobs but has not taken a job
- •An increase in labor productivity
- •Increase Not change
- •Increase Increase
- •If there is an increase in the money supply, the aggregate demand curve will shift to the right.
- •Consumption increases as income increases
- •Increase real gross domestic product if the economy is below full employment
- •Expect the interest rate to rise
- •Will not change investment
- •All of the above
- •Answers (b) and (c) are true
- •The gradual exhaustion of natural resources
- •Monetary policy becomes more effective at changing real gross domestic product.
- •Increase wage rates because labor becomes more productive
- •Prices, including wages, adjust quickly to bring about full employment.
- •All of the above
- •A simultaneous decision by the Federal Reserve to increase the money supply
- •All of the above
- •All of the above
- •All of the above
- •Elastic Inelastic Inelastic Elastic
Interest rates will fall and unemployment will decrease.
Interest rates and the demand for loanable funds will decrease.
Interest rates and the price level will decrease.
The supply of labor will increase and wage rates will decrease
All of the above
Which of the following combinations most accurately summarizes the viewpoints of Keynesians and monetarists regarding the interest elasticity of the demand for money and the elasticity of the demand for investment?
Keynesians Monetarists
Money Investment Money Investment
Demand Demand Demand Demand
Inelastic Elastic Inelastic Elastic
Inelastic Inelastic Elastic Inelastic
Inelastic Inelastic Elastic Elastic
Elastic Elastic Inelastic Inelastic
Elastic Inelastic Inelastic Elastic