The Fed can use expansionary monetary policy to lower interest rates to stimulate aggregate demand
Indicate whether the statement is true or false
TRUE
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Ration coupons are often associated with price ceilings because they
a. substitute for dollars in the purchase of goods b. restore prices to equilibrium c. compensate for the producers' lost opportunities d. are used to allocate goods under conditions of excess demand e. enable producers to produce beyond equilibrium levels without suffering the consequences of lowering prices
In perfect competition, marginal revenue always equals
a. total revenue. b. price. c. average cost. d. marginal fixed cost.
If the price level is higher than expected, firms might raise their production in the short run if
a. the nominal wage they pay their employees was set based on the expected price level. b. prices are costly to adjust and they have set their price at some time in the past but are not ready to change it. c. they believe that the price of their product has risen relative to the price of other products, when in fact the rise in the price of their product reflects an increase in the general price level. d. All of the above are correct.
All of the following are examples of human capital except:
A. a computer which has top-of-the-line word processing software. B. the ability to coordinate labor effectively. C. knowledge of word processing programs. D. the ability to write clearly.