Consider a market that is initially in equilibrium. If we observe that price increased and quantity decreased, then which of the following could have occurred?
a. demand increased
b. supply increased
c. supply decreased
d. demand decreased
e. both demand and supply increased
C
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By bundling share purchases of many investors together mutual funds can take advantage of economies of scale and thereby lower
A) adverse selection. B) moral hazard. C) transactions costs. D) diversification.
Assuming that the growth rate of full-employment output is 3%, and that the actual unemployment rate fell 2 percentage points in the last year, Okun's Law predicts that output growth rate over the past year was
A) -1% B) 3% C) 5% D) 7%
Which of the following is a term that is sometimes used to describe markets with low entry barriers and firms that are price searchers?
a. pure competition b. monopoly c. monopolistic competition d. oligopoly
The Fed acquired the authority to do which of the following during the economic crisis of 2008?
What will be an ideal response?