If the Fed set and achieved a goal of zero unemployment,
A) the inflation rate would increase.
B) real GDP would equal potential GDP.
C) they would have an easier time achieving the goal of price stability.
D) the natural rate of unemployment would be negative.
A
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What is the relationship between price elasticity of demand and the monopolist's revenue?
a. marginal revenue is maximized where demand is unit elastic. b. average revenue is maximized where demand is unit elastic. c. marginal revenue is negative where demand is inelastic. d. average revenue is negative where demand is inelastic. e. marginal revenue is lowest where demand is unit elastic.
As the interest rate increases, consumers will tend to increase their amount of saving due to
a. increased profit b. their greater reliance on borrowing c. the lower opportunity cost of current consumption d. diminishing marginal utility e. the higher opportunity cost of current consumption
Which of the following is a firm's supply curve in a perfectly competitive market?
a. Total cost. b. Marginal revenue. c. Marginal cost. d. Average variable cost.
The long-run supply curve of a perfectly competitive industry is horizontal
a. in an increasing-cost industry b. in a decreasing-cost industry c. if the short-run supply curves for firms are upward-sloping d. if the short-run market supply curve is negatively sloped e. in a constant-cost industry