Composition of aggregate demand is a major determinant of the economy’s long-run economic growth rate.
Answer the following statement true (T) or false (F)
True
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Money prices are an extremely effective device for promoting social cooperation because
A) most people want money more than they want anything else. B) people are basically selfish. C) scarcity can be eliminated through appropriate changes in money prices. D) they don't change rapidly when circumstances change. E) they help to clarify the options available to people.
The Federal Reserve uses open market operations rather than changes in legal reserve requirements as its principal tool of monetary management because changes in legal reserve requirements
A) can be easily evaded by commercial banks. B) must secure Congressional approval. C) would be excessively powerful and disruptive. D) would be less profitable for the Federal Reserve Banks.
To maximize profit, the monopolist produces on the ________ portion of its demand where ________
A) elastic; P = MC B) elastic; MR = MC C) inelastic; P = MC D) inelastic; MR = MC
Keynes suggested that the short-run aggregate supply (SRAS) curve
A) is vertical. B) is horizontal. C) slopes downward. D) is not a relevant concept.