If the demand curve for agricultural products is inelastic, then it would be in the best interest of farmers as a group to
A) increase output and thereby receive greater revenues.
B) cause the price of their product to decrease.
C) find some way to decrease the quantities of output that are placed on the market for sale.
D) petition the government to find a way to decrease the demand for their product.
E) a and b
C
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How do the Fed's actions influence real GDP and how long does it take for real GDP to respond to the Fed's policy changes?
What will be an ideal response?
Which of the following would be included in inflationary expectations that are formed adaptively?
A) Money supply growth over the past two years B) Statements made by the President of the United States C) The average inflation rate over the past three years D) A recent price agreement by oil exporting nations
In the new Keynesian model, an increase in productivity will cause ________
A) a leftward shift in short-run and long-run aggregate supply B) a rightward shift in short-run and long-run aggregate supply C) a leftward shift in short-run aggregate supply and rightward shift in long-run aggregate supply D) a rightward shift in short-run aggregate supply and a leftward shift in long-run aggregate supply
If the Fed purchases U.S. government securities, gross domestic product:
a. increases because the resulting increase in the interest rate leads to a decrease in investment. b. increases because the resulting decrease in the interest rate leads to an increase in investment. c. decreases because the resulting increase in the interest rate leads to a decrease in investment. d. decreases because the resulting increase in the interest rate leads to an increase in investment. e. decreases because the resulting decrease in the interest rate leads to an increase in investment.