In response to a positive technology shock, which prediction of the sticky price model is difficult to reconcile with the data?
A) Output increases.
B) Employment decreases.
C) The price level decreases.
D) Money is procyclical.
A
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Refer to the figure above. A tariff of ________ would be purely protective
A) $0 B) $5 C) $8 D) $10
Refer to the graph below. The solid kinked demand curve would most likely be observed by a firm operating within
a. perfect competition.
b. pure monopoly.
c. an oligopoly.
d. monopolistic competition.
The poverty rate for blacks is _____________ the poverty rate for non-Hispanic whites.
A. almost three times B. about 50% more than C. slightly higher than D. a little lower than
Assume that the central bank lowers the discount to increase the nation's monetary base. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and reserve-related (central bank) transactions in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns
to complete equilibrium. a. The quantity of real loanable funds per time period remains the same and reserve-related (central bank) transactions become more positive (or less negative). b. The quantity of real loanable funds per time period falls and reserve-related (central bank) transactions remain the same. c. The quantity of real loanable funds per time period and reserve-related (central bank) transactions remain the same. d. The quantity of real loanable funds per time period rises and reserve-related (central bank) transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.