🏷️ LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION →
Log in
Economics
1
answer
0
watching
81
views

QUESTION 20 Based on the FOMC statement of June 13, 2018, we learn that the economy of the United States has stalled and the unemployment rate is increasing. True False 3.7037 points QUESTION 21 Based on the FOMC statement of June 13, 2018, we learn that the FOMC decided to raise the target range for the federal funds rate to 1-3/4 to 2 percent. True False 3.7037 points QUESTION 22 Based on the FOMC statement of June 13, 2018, we learn that the FOMC will base the timing and size of future adjustments to the target range for the federal funds rate on the outcome of midterm elections for the United States Senate and House of Representatives. True/False

Watch
1
answer
0
watching
81
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Darryn D'Souza
Darryn D'SouzaLv10
28 Sep 2019

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

The below ress relase may help in answering the following: In its press release the FOMC uses two economic terms. What are these terms and why would they be mandated? How are they traditionally inversely related? What graph demonstrates the relationship? How has the relationship been disrupted recently? Going forward, what may we expect from the FOMC?

Federal Reserve issues FOMC statement

For release at 2:00 p.m. EDT

Share

Information received since the Federal Open Market Committee met in June indicates that the labor market has continued to strengthen and that economic activity has been rising at a strong rate. Job gains have been strong, on average, in recent months, and the unemployment rate has stayed low. Household spending and business fixed investment have grown strongly. On a 12-month basis, both overall inflation and inflation for items other than food and energy remain near 2 percent. Indicators of longer-term inflation expectations are little changed, on balance.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee expects that further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee's symmetric 2 percent objective over the medium term. Risks to the economic outlook appear roughly balanced.

In view of realized and expected labor market conditions and inflation, the Committee decided to maintain the target range for the federal funds rate at 1-3/4 to 2 percent. The stance of monetary policy remains accommodative, thereby supporting strong labor market conditions and a sustained return to 2 percent inflation.

In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its maximum employment objective and its symmetric 2 percent inflation objective. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments.

Voting for the FOMC monetary policy action were: Jerome H. Powell, Chairman; John C. Williams, Vice Chairman; Thomas I. Barkin; Raphael W. Bostic; Lael Brainard; Esther L. George; Loretta J. Mester; and Randal K. Quarles.

QUESTION 41

The consumer price index is intended to measure the cost of all goods purchased in the economy over time.

True

False

0.7143 points Save Answer

QUESTION 42

When an economy has reached a zero unemployment rate, it is said to have reached full employment.

True

False

0.7143 points Save Answer

QUESTION 43

The official unemployment rate is a useful but not altogether accurate measure of joblessness.

True

False

0.7143 points Save Answer

QUESTION 44

The two types of reserves are federal reserves and required reserves.

True

False

0.7143 points Save Answer

QUESTION 45

Automatic stabilizers, such as tax revenues and transfer payments, eliminate fluctuations in the business cycle.

True

False

0.7143 points Save Answer

QUESTION 46

When the actual rate of unemployment is equal to the natural rate of unemployment, we conclude that there is no cyclical unemployment.

True

False

0.7143 points Save Answer

QUESTION 47

Increased government regulation can cause the aggregate supply curve to shift to the left.

True

False

0.7143 points Save Answer

QUESTION 48

The price index in the base year is normalized so that it equals 100.

True

False

0.7143 points Save Answer

QUESTION 49

If the Federal Reserve wants to increase the money supply, it should raise the required reserve ratio.

True

False

0.7143 points Save Answer

QUESTION 50

The aggregate supply curve in the long run is vertical because wages and other input prices respond completely to a change in price level.

True

False

0.7143 points Save Answer

QUESTION 51

Public choice analysis helps us to understand why deficits seem inevitable, since we always pay the full costs of government programs today.

True

False

0.7143 points Save Answer

QUESTION 52

Expansionary demand-side fiscal policies set up a tradeoff between increasing output at the expense of raising prices.

True

False

0.7143 points Save Answer

QUESTION 53

Cathy works part-time as a bookkeeper but would like to have a full-time position. She has been actively searching for months but so far has not found a job. According to the Bureau of Labor Statistics, Cathy is unemployed.

True

False

0.7143 points Save Answer

QUESTION 54

The real rate of interest is the nominal rate of interest times the inflation rate.

True

False

0.7143 points Save Answer

QUESTION 55

The time required to comprehend that a recession has in fact begun is called the recognition lag.

True

False

0.7143 points Save Answer

QUESTION 56

If an economy is in long-run equilibrium, it is also in short-run equilibrium.

True

False

0.7143 points Save Answer

QUESTION 57

Policymakers can increase output by enacting policies that expand government spending, consumption, investment, or net exports or reduce taxes.

True

False

0.7143 points Save Answer

QUESTION 58

When Disney builds a new amusement park in the United States, it is counted as part of GDP.

True

False

0.7143 points Save Answer

QUESTION 59

The oil shock of 1973 led to demand-pull inflation.

True

False

0.7143 points Save Answer

QUESTION 60

Casey is a 16-year-old high school student who has no marketable skills. He has been browsing the want-ads in the local newspaper for months but finally got so discouraged that he quit looking. According to the Bureau of Labor Statistics, Casey is unemployed.

True

False

Question 1

The law of demand states that there is a direct relationship between supply and demand.

True

False

4 points

Question 2

Equilibrium is a state of balance between supply and demand.

True

False

4 points

Question 3

Goods are scarce for both rich and poor.

True

False

4 points

Question 4

"The big corporations in this country, like ExxonMobil and GM, have deep pockets and need to be hiring more people." This is a positive statement about economic policy.

True

False

4 points

Question 5

The law of supply states that there is a direct relationship between price and quantity demanded.

True

False

4 points

Question 6

In the circular flow model, firms own economic resources, and householdsbuy the manufactured products and services.

True

False

4 points

Question 7

Households play a dual role of providing the factors of production whilepurchasing the goods and services of firms.

True

False

4 points

Question 8

Opportunity cost is the lowest valued benefit that must be sacrificed asthe result of choosing an alternative.

True

False

4 points

Question 9

Scarcity denotes that our desire for a good exceeds the amount that isfreely available from nature.

True

False

4 points

Question 10

Economics is a social science concerned with satisfying man's unlimitedwants with limited resources.

True

False

4 points

Question 11

Joint output of individuals or nations will be maximized when goods areexchanged between parties in accordance with the law of"comparative advantage".

True

False

4 points

Question 12

The production possibilities frontier assumes that the level of technologyvaries when applying the model.

True

False

4 points

Question 13

Excess demand in the market will cause the price of a product to decline.

True

False

4 points

Question 14

Demand is measured on the vertical axis and supply on the horizontalaxis.

True

False

4 points

Question 15

A change in quantity demanded is a movement along the same demandcurve.

True

False

4 points

Question 16

As globalization and world trade proliferates, individual markets withincountries' economies become more competitive.

True

False

4 points

Question 17

Which growth theory compares a subsistence real wage rate to the actual real wage rate?

Classical growth theory

Inflation growth theory

Neoclassical growth theory

New growth theory

4 points

Question 18

Suppose the working age population in Tiny Town is 100 people. If 25 of these people are NOT in the labor force, the ________ equals ________.

unemployment rate; 25/100 × 100

employment rate; 25/75 × 100

labor force; 75

labor force; 25/100 × 100

4 points

Question 19

Suppose there is a rise in the real wage rate. As a result, the quantity of labor demanded:

increases.

decreases.

does not change because there is no change in the money wage rate.

increases only if the price level also decreases.

4 points

Question 20

GDP can be computed as the sum of:

all sales that have taken place in an economy over a period of time.

the total expenditures of consumers and business over a period of time.

the total expenditures of consumption, investment, and government expenditure on goods and services over a period of time.

the total expenditures of consumption, investment, government expenditure on goods and services, and net exports over a period of time.

4 points

Question 21

The real wage rate equals:

(100 x (money wage rate/price level)

(100 x (price level/money wage rate)

(money wage rate x (price level)

(money wage + (number of hours worked/(price level)

4 points

Question 22

If the CPI was 121.5 at the end of 2007 and 138.3 at the end of 2008, the inflation rate over these two years was:

10.2 percent.

13.8 percent.

12.2 percent.

16.8 percent.

4 points

Question 23

A movement along the production function is the result of a change in:

the quantity of labor.

technology.

capital.

interest rates.

4 points

Question 24

All of the following are part of fiscal policy EXCEPT:

setting tax rates.

setting government spending.

choosing the size of the government deficit.

controlling the money supply.

4 points

Question 25

Along a production possibilities frontier for real GDP and the quantity of leisure time, as leisure time increases, real GDP:

decreases.

increases.

stays the same.

could increase, decrease or stay the same.

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in