How would a country offset the effects of reduced government spending (assume fixed exchange rates and low international capital mobility)?
a. The central bank would sell securities in the open market.
b. The central bank would buy securities in the open market.
c. The central bank would buy domestic currency in the foreign exchange market.
d. The central bank would raise the discount rate.
.B
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In the long run, the unemployment rate
A) is equal to the expected unemployment rate. B) is zero. C) can take on any value. D) is equal to the natural unemployment rate. E) must be equal to the expected inflation rate.
In the figure above, the curve labeled "X" can be a
A) monopoly's demand curve. B) monopoly's marginal revenue curve. C) perfectly competitive firm's demand curve. D) perfectly competitive firm's marginal revenue curve.
Coco chocolate manufacturers recently decided to "gift" one of its retailers a refrigerator. Why would it want to do that?
a. To ensure the retailer knowledge of their generosity b. To ensure the retailers knowledge of their quality c. To ensure the freshness of the product that reaches their consumers d. To ensure the retailers decrease in price
With successful collusion that maximizes the total profits of the firms in the market,
a. the market demand curve shifts leftward b. monopoly power allows the sellers to charge whatever price they want for their joint output level c. each firm faces a horizontal demand curve for its output d. each firm can sell as much output as it chooses at the price set by the cartel e. the pricing decision is constrained by the market demand curve