In the short run, which of the following is the most likely effect of an unanticipated move to expansionary monetary policy?
a. an increase in real output
b. a decrease in real output
c. an improvement in technology, which will stimulate growth in the long run
d. an increase in prices proportional to the increase in the money supply
A
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Government purchases are part of _______ and include _______
a. national income; federal and state government purchases b. GDP; federal, state, and local government purchases c. GDP; federal government purchases only d. national income; federal government purchases only e. national income; federal, state, and local government purchases
Refer to the table below. If an excise tax of $3 per unit is imposed on this product, the incidence of the tax will be:
The following table gives data for the market for a product.
A. $3 on the buyers and $0 on the sellers
B. $0 on the buyers and $3 on the sellers
C. $2 on the buyers and $1 on the sellers
D. $1 on the buyers and $2 on the sellers