As the number of firms in an oligopoly increases, the magnitude of the price effect increases
a. True
b. False
Indicate whether the statement is true or false
False
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On a steeply sloped aggregate supply curve, monetary policy will affect primarily output
a. True b. False Indicate whether the statement is true or false
Refer to the accompanying figure. As the production of pizza increases, the opportunity cost of producing pizza:
A. decreases. B. increases. C. becomes negative. D. doesn't change.
Assume a simplified banking system subject to a 20 percent required reserve ratio. If there is an initial increase in excess reserves of $100,000, the money supply:
A. increases $100,000. B. increases $500,000. C. increases $600,000. D. decreases $500,000.
When the policy rate increases,
A) IS curve does not change. B) IS curve shifts to the right. C) IS curve shifts to the left. D) LM curve shifts upward. E) LM curve shifts downward.