All of the following are possible consequences of noise traders EXCEPT
A) increased volatility in the financial market.
B) asset prices differing from fundamental values.
C) herd behavior contributing to speculative bubbles.
D) reduced volatility of asset prices.
D
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At the economy's natural rate of unemployment
A. only frictional unemployment exists. B. there is only a relatively small amount of cyclical unemployment. C. only structural unemployment exists. D. the economy is fully employed.
Which of the following is an example of monetary policy?
a. Raising the interest rate b. Decreasing the tax rate c. Increasing the amount of government spending d. Fixing a price ceiling for necessary goods
In the short run
A) existing firms do NOT face limits imposed by a fixed factor of production. B) all firms have costs that they must bear regardless of their output. C) new firms can enter an industry. D) existing firms can exit an industry.
Which of the following is an example of a positive supply shock?
a. an unexpected labor strike b. a major widespread forest fire c. an unexpected price cut in imported oil d. a decrease in the overall price level