Refer to Table 26-2. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if the Federal Reserve does not use monetary policy
If the Fed wants to keep real GDP at its potential level in 2017, it should
A) increase income taxes. B) buy Treasury securities.
C) increase the required reserve ratio. D) sell Treasury securities.
B
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When researchers compare people who are asked to imagine that, having previously purchased a ticket for $10, they arrive at the theater to discover they have lost their ticket to people who are asked to imagine that they arrive just before the performance to buy a ticket and find they have lost $10 from their wallets, which group is more likely to say that they would still attend the performance?
A. Both groups are equally likely to say they would attend the performance. B. The lost $10 group C. Both groups report that they would no longer go to the performance. D. The lost ticket group
Demand for the product of an industry in perfect competition is assumed to be inelastic.
Answer the following statement true (T) or false (F)