An autonomous expenditure is one that does NOT depend on
A) government policy.
B) the automobile sector.
C) interest rates.
The capacity of a firm can best be described as
A) when a firm is producing maximum output.
B) a firm's production when operating normal hours using a normal sized workforce.
C) when a firm makes full use of all the space available in its factory or building.
D) when all of the firm's workers are producing at their maximum potential.
A key reason that FOMC members expected that their target for the federal funds rate in 2016 would be higher than it actually was is that they had expected the growth rate of real GDP to be ________ and the inflation rate to be ________ than they actually were.
A) higher; higher
B) higher; lower
C) lower; higher
D) lower; lower
What three parts of the economy are represented in the IS-MP model?