The techniques of regulation used in the U.S. are
(a) meant to solve basic problems, but they create others.
(b) meant to re-enforce the "decisions of the marketplace."
(c) meant to manage problems rather than solve them.
(d) designed to make the economy more efficient than is possible with only the free market mechanism.
(a)
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Other things constant, if the population decreases and GDP remains unchanged,
A) real GDP necessarily decreases. B) per capita GDP necessarily increases. C) per capita GDP necessarily decreases. D) real GDP necessarily increases.
The Fed fights inflation by _______
A. lowering the federal funds rate, which lowers interest rates and de-creases aggregate demand B. raising the federal funds rate, which raises interest rates and decreases aggregate demand C. decreasing the monetary base, which raises the interest rate and in-creases saving D. lowering the long-term real interest rate, which increases investment and spurs economic growth