What characterized the decades of the 1950s and 1960s? A) Low growth and high un

Question

What characterized the decades of the 1950s and 1960s? A) Low growth and high unemployment B) Low unemployment and high inflation C) Stagflation D) Economic stability with reasonably low unemployment and inflation 14. 15. What is the result if an economy is at full-employment equilibrium and the money supply is increased? A) Real GDP will rise. B) A recessionary gap will emerge. C) Interest rates will rise. D) The transactions demand for money will fall. E) None of the above. 16. When the Bank of Canada implements a tight money policy, what happens to the interest rate? A) It falls. B) It rises. C) It remains constant. D) It moves in the same direction as does the price of bonds The graph relates to a closed, non-government economy presently at an equilibrium income level of $4000. 18 16 14 12 10 4000 3000 1000 0 1000 2000 2000 4000 6000 Investment Spending Real GDP 17. Refer to the graph above to answer this question. What is the rate of interest at equilibrium? A) 6%, B) 8%. C) 12%. D) 20%.

Explanation / Answer

Ans-14 (d) Economic stability with reasonably low unemployment and inflation

Ans-15. (a) GDP rise

Ans-16 (b) rises

Tight monetary policy implies the Central Bank (or authority in charge of Monetary Policy) is seeking to reduce the demand for money and limit the pace of economic expansion. Usually, this involves increasing interest rates.

Ans-17 (b)

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.