Which of the following is the most likely cause of most recessions according to the Keynesian model?
a. a fall in productivity.
b. an increase in taxation and government spending.
c. a fall in expected profits.
d. a rise in the price of oil.
e. a fall in the money supply.
C
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For many years the U.S. government imposed quotas on cheap, Middle Eastern oil imports. The U.S. consumer consequently paid $3 billion more per year for oil products. A likely rationale for such a policy is
A. people in the oil industry deserved the transfer. B. conservation. C. one cannot be dependent on foreign supplies of so crucial a resource. D. American oil was of higher quality and deserved a higher price.
The ________ traces out the points for which total quantity of goods produced equals total quantity of goods demanded
A) LM curve B) IS curve C) consumption function D) investment schedule
Suppose a monopolist and a perfectly competitive firm have the same cost curves. The monopolistic firm would:
a. charge the same price as the perfectly competitive firm. b. refuse to operate in the short run unless an economic profit could be made. c. charge a higher price than the perfectly competitive firm. d. charge a lower price than the perfectly competitive firm.
If the Fed wishes to increase the money supply it can:
A. Raise the federal funds rate. B. Sell bonds on the open market. C. Decrease the discount rate. D. Increase the required reserve ratio.