Under a fixed exchange rate system, if the real interest rate is at its lower bound and the central bank implements expansionary policy, real GDP will ________ and the output gap will ________
A) increase; increase
B) decrease; decrease
C) increase; decrease
D) not change; not change
D
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History and Adam Smith both point out that people of the same trade
a. often face the temptation to engage in collusion. b. rarely consider engaging in collusion. c. meet only to consider how to improve the quality of their products. d. scrupulously avoid engaging in discussions about their trade since they are competitors.
All points below the budget line are
A) inferior to every point on the budget line. B) preferred to every point on the budget line. C) affordable. D) Answers A and C are correct.
If total costs are $18,000 for the year, and the firm has fixed costs of $12,000, what is the level of the firm's variable costs?
What will be an ideal response?
Intense market competition is ________ for consumers, since it_______
a. Bad; erodes producer surplus b. Bad, increases variety in the market c. Good, increases the price level in the market d. Good; decreases the price level in the market