An unexpected shift to a more expansionary monetary policy will generally
a. stimulate aggregate demand and real output as soon as the policy is instituted.
b. exert its primary impact on aggregate demand and real output 6 to 15 months in the future.
c. cause inflation in the short run, but expand real output in the long run.
d. increase real interest rates in the short run.
B
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The Economic Report of the President gives the following age distribution of the United States population for the year 2000:
United States Population By Age Group, 2000 Outcome (age category Under 5 5-15 16-19 20-24 25-44 45-64 65 and over Percentage 0.06 0.16 0.06 0.07 0.30 0.22 0.13 Imagine that every person was assigned a unique number between 1 and 275,372,000 (the total population in 2000). If you generated a random number, what would be the probability that you had drawn someone older than 65 or under 16? Treating the percentages as probabilities, write down the cumulative probability distribution. What is the probability of drawing someone who is 24 years or younger? What will be an ideal response?