Business, 08.11.2019 00:31 tmiller2862

Moore’s law states that every 18 months, the computing speed of a microchip doubles.

a. what effect does this likely have on the economy?

the price level rises and output falls.
the price level falls and output falls.
the price level falls and output rises.
the price level rises and output rises.
congratulations! you have been appointed an economic policy adviser to the u. s. president. you are told that the economy is significantly below its potential output and that the following will happen next year: world income will fall significantly and the price of oil will rise significantly. (the united states is an oil importer.)

a. what will happen to the price level and output?

price level decreases and output may increase or decrease.
price level may increase or decrease and output increases.
price level increases and output may increase or decrease.
price level may increase or decrease and output decreases.
b. what policy might you suggest to the government?

contractionary monetary policy
expansionary monetary policy
contractionary fiscal policy
expansionary fiscal policy

Answers: 2

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Moore’s law states that every 18 months, the computing speed of a microchip doubles.

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