If the compensated (Hicks) and Marshall demand curves for a good intersect, at that point the Marshall curve will be:
a. flatter if this is a normal good.
b. steeper if this is a normal good.
c. flatter if this is an inferior good.
d. horizontal.
a
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An increase in the discount rate will result in:
A) increase in bank reserves and a decrease in the federal funds rate. B) increase in bank reserves and an increase in the federal funds rate. C) decrease in bank reserves and a decrease in the federal funds rate. D) decrease in bank reserves and an increase in the federal funds rate.
What best defines active policy making?
A) taking action to offset a change in economic performance B) taking action to increase long-term economic growth C) taking action to make markets more competitive so as to improve efficiency D) taking action to make markets less competitive so as to improve equity
For which of the following goods is the marginal benefit of search likely to be greatest?
a. a toaster b. an apple c. a radio d. a tube of toothpaste e. a color TV
GDP in excess of potential GDP will shift the aggregate supply curve to the left and the price level will increase
a. True b. False Indicate whether the statement is true or false