Prices do not necessarily tend toward equilibrium and are subject to fits of change when a market is
a. a natural monopoly
b. an unbalanced oligopoly
c. monopolistically competitive
d. in a long-run situation
e. an oligopoly using game theory strategies
E
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According to the quantity theory of money, a 10 percent increase in the quantity of money ultimately leads to a 10 percent increase in
A) real national income. B) real GDP. C) the price level. D) velocity.
Which of the following could be an example of a question that would be studied in microeconomics?
A. How did the recession end in 2009 if unemployment continued to rise? B. How will the legalization of marijuana in Colorado affect the market for cigarettes? C. When should Congress raise taxes in order to tackle the debt crisis? D. Why did our economic growth rate slow down during the 2000s?
The nominal return on an inflation-protected bond equals a fixed real return:
A. plus the actual rate of inflation. B. divided by the price level. C. plus the expected rate of inflation. D. minus the actual rate of inflation.
A demand curve that is horizontal indicates that the commodity
A) has few substitutes. B) must be very cheap. C) is a necessity. D) has a large number of substitutes.