Unlike a money supply target, an inflation rate target
a. will always stabilize income better.
b. will stabilize income better if velocity is unstable.
c. still allows the Fed unlimited discretion.
d. eliminates the need for a central bank.
B
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Brady Industries has average variable costs of $1 and average total costs of $3 when it produces 500 units of output. The firm's total fixed costs equal
a. $2. b. $4. c. $1,000. d. $2,000.
In a market economy, we know that a resource has become scarcer when
a. its price rises relative to other prices. b. it is non-renewable and some of it is used. c. people search for substitutes. d. All of the above are correct.
Sectoral changes in demand
a. create frictional unemployment, while firms paying wages above equilibrium to attract a better pool of candidates creates structural unemployment. b. create structural unemployment, while firms paying wages above equilibrium to attract a better pool of candidates creates frictional unemployment. c. and firms paying wages above equilibrium to attract a better pool of candidates both create structural unemployment. d. and firms paying wages above equilibrium to attract a better pool of candidates both create frictional unemployment.
Gross domestic product represents the money value of all final goods and services produced in the domestic economy within the year.
Answer the following statement true (T) or false (F)