Which of the following correctly describes what the Fed used as monetary targets in the past?
A) The Fed used M1 and M2 as targets after 1993.
B) After 1980 and before the 1990s, the Fed focused on interest rate targets.
C) The Fed focused on M1 as a target after deregulation of the financial markets.
D) The Fed increased its reliance on interest rate targets since the mid-1990s.
D
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In the long run, immigration will shift the sending country's production possibilities frontier inward. This shift will cause:
a. a larger decline in the potential output of the capitalintensive good. b. a larger decline in the potential output of the labor intensive good. c. equal declines in the potential output of both the laborintensive and the capitalintensive good. d. a decline in the potential output of the labor intensive good and an increase in the potential output of the capitalintensive good.
In the aggregate demand and aggregate supply model,
a. the factors that cause the demand curves in both models to slope downward are the same. b. the factors that cause the supply curves in both models to slope upward are the same. c. the upward-sloping aggregate demand curve intersects the downward-sloping aggregate supply curve to determine the economy's price level and GDP. d. the upward-sloping aggregate supply curve intersects the downward-sloping aggregate demand curve to determine the economy's price level and GDP. e. the price level never changes even with shifts in aggregate demand and aggregate supply.