A major advantage of monetary policy over fiscal policy is that monetary
A. policy affects all sectors of the economy equally.
B. policy can be put into effect more quickly.
C. policy, once implemented, takes effect more quickly.
D. authorities see the need for policy more quickly.
Answer: B
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There are five firms in the cresset industry. The market shares of the five firms are 60 percent, 15 percent, 15 percent, 6 percent, and 4 percent. The Herfindahl index is
a. 96 b. 4,086 c. 10,000 d. 4,102 e. 4,100
Consumption is $5 million, planned investment spending is $8 million, government purchases are $10 million, and net exports are equal to $2 million. If GDP during that same time period is equal to $27 million, what unplanned changes in inventories occurred?
a. There was an unplanned increase in inventories equal to $2 million. b. There was no unplanned change in inventories. c. There was an unplanned decrease in inventories equal to $2 million. d. There was an unplanned decrease in inventories equal to $19 million.