If the economy is in a liquidity trap:

a. both monetary and fiscal policies are effective

b. neither monetary nor fiscal policy can be effective

c. monetary policy can be effective, but fiscal policy is not

d. fiscal policy can be effective but monetary policy is not

e. expansionary monetary policy can be effective while contractionary monetary policy is not

True or False: A liquidity trap occurs when expansionary monetary policy fails to work because an increase in bank reserves by the Fed does not lead to an increase in bank lending.

Explain the relationship between the long-run Phillips curve and potential GDP and the short-run Phillips curve and the aggregate supply curve.

A financial asset is considered a security if:

A. its value increases after it is sold in a primary market

B. the owner of the security receives dividends and realizes a capital gain when the asset is sold

C. its value is secure; that is, the owner will not suffer a financial loss when the asset is sold

D. it can be sold in a secondary market.

What unit of measurement Is used in describing cell size?

Which of the following is common to both tariffs and quotas?

A) Tariffs and quotas are both used as a means to increase government revenue.

B) Tariffs and quotas both increase economic efficiency.

C) Tariffs and quotas are both designed to reduce foreign competition faced by domestic firms.

D) Tariffs and quotas are both examples of voluntary export restraints.

In the absence of an external force, a moving object will...

Which of the following policies would be most likely to reduce the rate of inflation?

a. sale of government bonds by the Federal Reserve

b. a reduction in the discount rate

c. an increase in the size of the federal budget deficit

d. a reduction in the required reserves imposed on the banking system

The increase in real GDP per hour of labor that results from an advance in technology makes labor ________ productive ________.

A. more; at all quantities of capital

B. less; and capital more productive

C. more; only at a large quantity of capital

D. more; and capital less productive

Compare the male and female structures formed from each of the following: genital tubercle, genital folds, and labioscrotal swellings.

Solve.

The number of cranes born each year in a new aviary forms a sequence whose general term is $a_n=n^2+2 n-1$. Find the number of cranes born in the fourth year and the total number of cranes born in the first four years.

Suppose money demand depends on disposable income, so that the equation for the money market becomes M/P=L(r, Y-T). Analyze the short-run impact of a tax cut in a small open economy on the exchange rate and income under both floating and fixed exchange rates.

Suppose the demand for real money balances depends on disposable income. That is, the money demand function is M/P=L(r, Y-T). Using the IS-LM model, discuss whether this change in the money demand function alters the following.

Suppose the economy is in a long-run equilibrium.

Use the sticky-wage theory of aggregate supply to explain what will happen to output and the price level in the long run (assuming there is no change in policy). What role does the expected price level play in this adjustment? Be sure to illustrate your analysis in a graph.