New information ought not to influence economic decision-making if ________
A) consumers rely on rational expectations
B) monetary policy changes
C) monetary and/or fiscal policy changes
D) that information has already been anticipated
D
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If the required reserve ratio is 15 percent, there is no currency drain, and banks loan all of their excess reserves, an increase in the monetary base of $20,000 leads to a total increase in the quantity of money of
A) $200,000. B) $133,333. C) $3,000. D) $20,000. E) $300,000.
Which term represents a situation in which all firms earn zero economic profits producing the output level where P = MR = MC and P = AC?
a. Perfect competition b. Marginal revenue c. Long-run equilibrium d. Shut-down point
The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
In markets, prices move toward equilibrium because of
a. government regulations placed on market participants. b. buyers' ability to affect market outcomes. c. the actions of buyers and sellers. d. increased competition among sellers.