Expansionary monetary policy should be used if:
A) aggregate demand-aggregate supply equilibrium is below potential output.
B) aggregate demand-aggregate supply equilibrium is above potential output.
C) aggregate demand-aggregate supply equilibrium is equal to potential output.
D) none of the above.
A
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Using the data in the table above, the demand for skirts is
A) elastic. B) unit elastic. C) inelastic. D) indeterminate. E) perfectly inelastic.
An oligopolistic market
a. has a small number of rival firms, and each is large relative to the size of the market. b. is characterized by firms that merely take the price that is determined by the forces of supply and demand in the market. c. has low entry barriers facing firms that may be interested in entering the market. d. has a large number of firms that are small relative to the size of the market.
An increase in deductions, exemptions, and credits in the tax code will
A. Induce economic activity to go underground. B. Reduce the tax base. C. Allow lower rates to raise the same tax revenues. D. Increase the marginal tax rate.
According to the above table, the value of M1 is
A. $1,205 billion. B. $1,888 billion. C. $1,629 billion. D. $1,313 billion.