If the intersection of the IS curve with the horizontal axis comes at a level of output below the natural level of output, the Fed
A) can easily bring the economy back to the full-employment level of output.
B) loses control of the economy.
C) must use contractionary model policy to correct economic problem.
D) must decrease money supply and ignore interest rates.
B
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Compared to a competitive market, a firm that has a monopsony in a labor market would
A) hire fewer workers and pay higher wages. B) hire more workers and pay higher wages. C) hire more workers and pay lower wages. D) hire fewer workers and pay lower wages.
When economists refer to intangible items, they are referring to such things as
a. illegal goods, and the value of such items is included in GDP. b. illegal goods, and the value of such items is excluded from GDP. c. hair styling and dental care, and the value of such items is included in GDP. d. hair styling and dental care, and the value of such items is excluded from GDP.
The Lucas supply function incorporates the idea that output depends on the difference between the actual price level and the expected price level.
Answer the following statement true (T) or false (F)
The Herfindahl-Hirschman index is measured by
A) adding the market shares of all firms in an industry. B) adding the squares of the market shares of all firms in an industry. C) squaring the sum of the market shares of the all firms in an industry. D) adding the market shares of the four largest firms in an industry.