Refer to Figure 15-15. If the government regulates Erickson Power Company so that the firm can earn a normal profit, the price would be set at ________ and the output level is ________
A) P3, Q2 B) P1, Q4 C) P2, Q2 D) P2, Q3
D
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According to the textbook, the Fed's information is fairly imprecise in regards to all of these things except:
A. actual real GDP B. potential GDP C. size of output gaps D. speed of the effects of its actions
The money supply curve is ________.
A. inelastic with respect to the interest rate B. drawn as a downward sloping line C. elastic with respect to the interest rate D. drawn as an upward sloping line
If the Fed increases the supply of bank reserves, ________
A) consumption falls B) investment falls C) the federal funds rate falls D) the inflation rate falls
A country's CPI was 84.5 last year and 100.0 this year. The inflation rate was
A) 84.5 percent. B) 18.3 percent. C) 15.5 percent. D) 7.29 percent. E) -18 percent.