How do modern economies experience ongoing inflation when achieving economic growth?
What will be an ideal response?
Over time in modern economies, both aggregate demand and long-run aggregate supply increase. A modern economy typical experiences inflation because the increase in aggregate demand is greater than the increase in long-run aggregate supply.
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If velocity is highly unstable, then targeting the money supply
a. will be effective in stabilizing the LM curve and interest rates. b. has the same effects as targeting interest rates. c. will be ineffective in stabilizing aggregate demand. d. none of the above.
The New York Stock Exchange (NYSE) originated as:
A. a decentralized electronic market made up of dealers all over the world. B. a financial market where nearly 100 million shares of stock are traded every business day. C. the only centralized stock exchange in the world. D. an example of a centralized exchange.