Does an increase in the inflation rate increase or decrease the amount of money people choose to hold at any given price level? What would an increase in the inflation rate do to money demand? What would this change in money demand do to the price level?
An increase in inflation reduces the amount of money people want to hold. Money demand would shift left. The price level would rise.
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Which of the following correctly describes the profit-maximizing level of output selected by a monopolistically competitive firm in the short run?
a. Output is set in the short run where marginal cost equals price. b. Output is set in the short run where marginal cost equals marginal revenue. c. Firms will shut down in the short run even if price exceeds average variable cost at the rate of output selected by the firm. d. Firms will shut down in the short run even if price equals marginal cost.
Since the Civil War, the poorest section of the country has been the __________.
Fill in the blank(s) with the appropriate word(s).
A quota is a restriction that allows women and minorities to import a certain percentage of imports.
Answer the following statement true (T) or false (F)
If more of one good can be produced without producing less of another output, the economy must have been operating efficiently
a. True b. False Indicate whether the statement is true or false