In response to an unanticipated easing of monetary policy, the price level ________ at first, then ________ after a year
A) rises; returns most of the way to its original value
B) falls; returns most of the way to its original value
C) remains roughly unchanged; begins to rise
D) remains roughly unchanged; begins to fall
C
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Use the following graph to answer the next question.
Assume the economy is initially located on AD0 and AS0. An increase in the exchange rate and a decrease in worker productivity would result in price ________ and real domestic output ________.
A. E; B B. F; A C. G; B D. F; C
A "buy one, get one for half price" promotion is an example of
A) price discriminating among units of a good. B) price discriminating among groups of buyers. C) a legal monopoly. D) a natural monopoly. E) marketing by a perfectly competitive firm designed to increase the firm's sales.
If the marginal propensity to save is 0.40, a $20 billion increase in investment spending would cause equilibrium output to:
a. increase by $50. b. increase by $80. c. decrease by $33. d. decrease by $40. e. decrease by $20.
A cartel is a group of firms that attempt to collude by coordinating price and output decisions
a. True b. False Indicate whether the statement is true or false