The central bank of Vervia buys and sells government bonds to alter the level of money supply in the country. This method of controlling the money supply is known as:
a. crowding out
b. forward guidance.
c. open market operations.
d. quantitative easing.
c
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The simple Keynesian model assumes that
A) gross private domestic investment exceeds net investment by the capital consumption allowance. B) prices, especially the price of wages, are "sticky downward." C) there will never be any excess capacity in the short run. D) aggregate demand will always equal aggregate supply.
Refer to the above table. Given the demand and cost schedules, what is the profit-maximizing price for this monopolist?
A) $9 B) $12 C) $11 D) $10
In all cases, positive economics deals with
A) what is. B) what should be. C) relatively small units in the economy. D) aggregates or the entire economy.
In the dynamic aggregated demand and aggregate supply model, inflation occurs if
A) the AD curve shifts more to the right than the LRAS curve. B) the SRAS curve shifts more to the right than the AD curve. C) the AD curve shifts to the left and the SRAS curve shifts to the right. D) the AD curve shifts to the left and the LRAS curve shifts to the right.