« previous next »

Author Question: Economists agree that the multiplier effect on real output is close to zero when: a. inflation is ... (Read 64 times)

ishan

  • Hero Member
  • *****
  • Posts: 546
on: Jun 30, 2018
Economists agree that the multiplier effect on real output is close to zero when:
 a. inflation is very low.
 b. the economy is at or near full employment.
  c. the national debt is relatively small.
 d. shovel-ready projects exist.

Question 2

Suppose that the Fed decides to decrease the money supply by 0.87 percent. If the velocity of money is constant, then the quantity theory of money predicts that:
 a. nominal GDP will remain unchanged.
  b. the quantity of output will rise by 0.87 percent.
  c. nominal GDP will fall by 0.87 percent.
  d. the price level will fall by 0.87 percent.
  e. real GDP will fall by 0.87 percent.


SVictor

  • Sr. Member
  • ****
  • Posts: 365
Reply #1 on: Jun 30, 2018
Answer to Question 1

b

Answer to Question 2

c


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Illness; diuretics; laxative abuse; hot weather; exercise; sweating; caffeine; alcoholic beverages; starvation diets; inadequate carbohydrate consumption; and diets high in protein, salt, or fiber can cause people to become dehydrated.

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Did you know?

During pregnancy, a woman is more likely to experience bleeding gums and nosebleeds caused by hormonal changes that increase blood flow to the mouth and nose.

Did you know?

Walt Disney helped combat malaria by making an animated film in 1943 called The Winged Scourge. This short film starred the seven dwarfs and taught children that mosquitos transmit malaria, which is a very bad disease. It advocated the killing of mosquitos to stop the disease.

Single-dose drug administration: pharmacokinetic values for this drug are as follows: onset of actio Single-dose drug administration: pharmacokinetic values for this drug are as follows: onset of actio
To cleanse an open wound, begin close to the wound and work outward in full or half circles. To cleanse an open wound, begin close to the wound and work outward in full or half circles.
Effect of pH on drug absorption. (a) A weak acid such as aspirin (ASA) is in a nonionized form in an ... Effect of pH on drug absorption. (a) A weak acid such as aspirin (ASA) is in a nonionized form in an ...
Ceiling effect of aspirin. A plateau is reached where increasing the dose of aspirin will not create ... Ceiling effect of aspirin. A plateau is reached where increasing the dose of aspirin will not create ...
Real Price of Oil, 1861–2010 Real Price of Oil, 1861–2010
Chloride and bicarbonate exchange in the renal tubules and effect of aldosterone on excretion of H+ Chloride and bicarbonate exchange in the renal tubules and effect of aldosterone on excretion of H+
Video: Electrical changes in the heart

For a complete list of videos, visit our video library