In 2014 and 2015, GDP growth slowed because of unusually col…

In 2014 and 2015, GDP growth slowed because of unusually cold weather in the Midwest and North East. In the Real Business Cycle framework, we would depict this as an inward shift of the [answer1] which would result in [answer2] inflation and [answer3] Real GDP Growth.

You purchased 10 shares of Goldman Sachs stock for $1,200 la…

You purchased 10 shares of Goldman Sachs stock for $1,200 last year which is now valued at $1,500. Assuming you face a tax rate of 15% on your capital gains, then you owe [answer1] in capital gains tax on your 10 shares if you continue to hold the stock today, and you owe [answer2] in capital gains tax on your 10 shares if you sell the stock today.

Refer to the figure above. In the figure, assume the initial…

Refer to the figure above. In the figure, assume the initial real growth rate of the economy is 3% (at it’s potential growth rate) when a negative aggregate demand shock shifts the AD curve from to . As a result, the Fed responds by increasing the money supply such that spending growth increases by exactly 10 percentage points. Which of the following is TRUE about the Fed’s policy response?