Author Question: If the Fed sells bonds, the short run impact of this policy will tend to include: a. an increase in ... (Read 26 times)

wenmo · **on:** Jun 30, 2018

If the Fed sells bonds, the short run impact of this policy will tend to include:
a. an increase in the inflation rate.
b. a reduction in unemployment.
c. an increase in real output.
d. an increase in real interest rates.

Question 2

Suppose in an economy the total factor productivity grows by 5. Annual growth in labor and capital stock equal 2.5 and 1.5 respectively. If the labor force receives 75 of the real GDP, calculate the annual growth in the real GDP of the economy.
a. 10.5
b. 7.25
c. 5.50
d. 4.76
e. 0.05