As price falls, quantity supplied ___________.
Fill in the blank(s) with the appropriate word(s).
falls
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What does it mean to say that an individual or a firm has internalized an externality?
What will be an ideal response?
According the graph shown, the firm's most efficient scale of operation is to produce quantity:
This graph represents the cost and revenue curves of a firm in a perfectly competitive market.
A. Q1.
B. Q2.
C. Q3.
D. Any quantity as long as P1 is charged.
Corporate management can defend itself against the threat of a hostile takeover in all of the following ways except
a. use of shark repellent activities b. buying its own corporate stock c. acquiring considerably more debt d. finding a white knight e. keeping a large cash reserve for an emergency
(a)Draw a figure, using the Keynesian IS-LM framework, of an economy in recession.(b)Now suppose the IS curve shifts up and to the right far enough that if the real interest rate is unchanged, output will increase beyond full employment. If the Fed's goal is to move output to its full-employment level, what must happen to the real interest rate? What is the effect on the price level? (c)Suppose, before the Fed can act, that the government announces a restrictive fiscal policy, shifting the IS curve down and to the left relative to its position in part (b) What is the Fed likely to do (relative to what it would do if fiscal policy wasn't restrictive) if its goal is to target full-employment output? What happens to the real interest rate relative to what it is in part (b)?
What will be an ideal response?