In response to an unanticipated tightening of monetary policy, the price level ________ at first, then ________ after a year
A) rises; returns most of the way to its original value
B) falls; returns most of the way to its original value
C) remains roughly unchanged; begins to rise
D) remains roughly unchanged; begins to fall
D
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The distinctive characteristic of an oligopolistic market structure is that there are recognizable interdependencies among the decisions of the firms
a. true b. false
In a market that is contestable, but has only a few sellers, the
a. threat of new entrants will prevent prices from rising above the competitive level. b. producers will be able to charge prices that are high enough to produce long-run economic profits. c. producers will not face new competition because the barriers to entry are high. d. market will never be expected to come close to the competitive result.
Of the following balance of payments measures, which one is least able to measure whether a nation is paying its own way?
a. Current account. b. Balance on goods & services. c. Balance on goods, services, and net income d. Reserves account
Inventors often obtain patents on new products and processes, thereby turning new ideas into
a. private goods and increasing the incentive to engage in research. b. private goods but decreasing the incentive to engage in research. c. public goods and increasing the incentive to engage in research. d. public goods but decreasing the incentive to engage in research.