The Taylor Rule specifies that the federal funds rate target should be equal to
A) 0.5 ( inflation rate) + 1.5 (GDP gap) + 1
B) 1.5 (inflation rate) + 0.5 (GDP gap) + 1.
C) interest rate - expected inflation rate.
D) equilibrium federal funds rate + inflation rate +1
B
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Refer to Figure 2-7. Assume that in response to changing consumer demands, Apple cuts back on the production of self-driving automobiles and increases its production of traditional automobiles. This strategy is best represented by the
A) movement from K to L in Graph C. B) movement from F to E in Graph A. C) movement from G to J in Graph B. D) movement from J to H in Graph B.
If four hair products companies agree to decrease the output of their styling products and raise the price of their styling products to $18, this is an example of ________.
A) bid rigging B) resale price maintenance C) market division D) price fixing
Who developed the school of thought known as utilitarianism?
a. Jeremy Bentham b. Dean Karlan c. Adam Smith d. Karl Marx
If the supply curve of a product changes so that sellers are now willing to sell 2 additional units at any given price, the supply curve will
A) shift leftward by 2 units. B) shift rightward by 2 units. C) shift vertically up by 2 units. D) shift vertically down by 2 units.