The wealth effect, interest-rate effect, and exchange-rate effect are all explanations for
a. the slope of short-run aggregate supply.
b. the slope of long-run aggregate supply.
c. the slope of the aggregate-demand curve.
d. everything that makes the aggregate-demand curve shift.
c
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The Secretary of the Treasury
A) serves as Chairman of the Board of Governors. B) serves as a member of the Board of Governors. C) serves as a member of the Federal Open Market Committee. D) does not serve on the Board of Governors.
The goal of utilitarians is to
a. apply the logic of individual decision making to questions concerning morality and public policy. b. measure happiness and satisfaction. c. redistribute income based on the assumption of increasing marginal utility. d. All of the above are correct.
Which of the following is not a characteristic of a perfectly competitive market?
A. There is a large number of small firms. B. Firms sell a homogeneous product. C. Firms can easily enter or exit the market. D. Firms are price makers, not price takers.
If a product has a short-run elasticity of supply equal to zero, then an increase in the demand for the product will:
A. increase price and leave quantity sold unchanged. B. increase price and reduce the quantity sold to zero. C. have no effect on price or quantity sold. D. leave the price unchanged and reduce the quantity sold.