Suppose the economy is in long-run and short-run equilibrium. The Fed changes its policy by raising the difference between the discount rate and the federal funds rate. In the long run we would expect to observe
A) a higher real national income. B) a lower real national income.
C) a higher price level. D) a lower price level.
D
Economics
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Which statement about allocative efficiency is true?
a. Allocative efficiency requires productive efficiency. b. Productive efficiency leads to allocative efficiency. c. Allocative efficiency is profitable but wasteful. d. Allocative efficiency benefits firms but not society.
Economics
If there is an increase in the number of worker hours that results in an increase in output, what will happen to the measure labor force productivity?
A. It may rise or fall, depending on which rose at a faster rate. B. It will remain constant. C. It will rise. D. It will fall.
Economics