Macroeconomic models help clarify important questions such as the following, excep
A.
Can governments reduce the severity of their economies' recessions?
B.
Is a policy of manipulating interest rates more effective at mitigating short-run economic fluctuations than a policy of changing the tax rates?
C.
How will OPEC manipulate and maintain the price of crude oil in the world markets?
D.
Is there a trade-off between lower unemployment and lower inflation?
C.
How will OPEC manipulate and maintain the price of crude oil in the world markets?
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It is useful to assume that there is a single representative consumer because
A) this is realistic. B) this is a useful abstraction if we are interested in problems where distribution effects are not important. C) this is the only model we know how to work with. D) a model with one consumer is the same as one with many consumers.
How is the short run response to a change in demand or cost condition different from the long run response in a perfectly competitive market?
When a profit-maximizing firm in a competitive price-searcher market is in long-run equilibrium, price equals
a. marginal cost, and profits are positive. b. average total cost, and profits are zero. c. marginal cost, and profits are zero. d. average total cost, and profits are positive.
Bank holding companies are examined by the __________________
Fill in the blank(s) with the appropriate word(s).