The Lucas supply function, in combination with the assumption that expectations are rational, implies that an announced monetary policy change will
A. not change output.
B. increase output, but never decrease output.
C. decrease output, but never increase output.
D. either increase or decrease output, depending on the type of monetary policy change.
Answer: A
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Quick Buck and Pushy Sales produce and sell identical products and face zero marginal and average cost. Below is the market demand curve for their product. 
If Quick Buck and Pushy Sales decide to collude and work together as a monopolist with each firm producing half the quantity demanded by the market at the monopoly price, then what will be Quick Buck's economic profit?
A. $4,000 B. $3,000 C. $1,000 D. $2,000
If the slope of the consumption schedule is 0.75, then the slope of the saving schedule is
A. 0.75. B. 1.25. C. 0.25. D. not possible to determine from the data.
The United States has a balance of payments surplus with Europe. We would therefore expect the supply of euros to be __________ the demand for euros. Consequently, the euro should __________
A) less than; appreciate B) greater than; depreciate C) less than; depreciate D) greater than; appreciate
Explain the difference between correlation and causation
What will be an ideal response?