Research on productivity shocks has shown that
A) productivity shocks have only nominal effects.
B) there have been no identifiable productivity shocks in the U.S. economy since World War II.
C) small productivity shocks can explain large business cycle fluctuations.
D) large productivity shocks produce only small deviations in aggregate output.
C
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Banks hold reserves:
A. to increase profits. B. only because the government requires them to hold reserves. C. to meet depositor withdrawals and payments. D. to earn interest.
Natural monopolies result from ________.
A. control over an essential natural resource B. pricing strategies C. patents and copyrights D. extensive economies of scale in production
The CPI stands for
A) Citizens Paying Index. B) Corporate Pricing Index. C) Consumer Paying Index. D) Consumer Price Index. E) Corporate/Consumer Payment Index.
Monopolies are inefficient because
A) they price discriminate. B) they maximize profits. C) they always make above-normal profits. D) they charge a price above marginal cost.