To try to eliminate a recessionary gap the Fed typically__________ the money supply, and to try to eliminate an inflationary gap the Fed typically __________ the money supply
A) increases; decreases
B) increases; increases
C) decreases; increases
D) decreases; decreases
A
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With peak-load pricing, a firm
A) charges more for a good during periods of high demand. B) charges more for a hotel room the higher up the mountain it is. C) charges less for a good during periods of high demand, because of regulatory reasons. D) is generally used during January and February.
The wage-schooling locus fails to allow researchers to test the theory that people choose education levels to maximize lifetime earnings because of self-selection. In this context, self-selection refers to
A. people letting their ability dictate, in part, how much education they complete. B. firms paying more educated workers a higher wage than they pay less educated workers. C. college graduates selecting their occupation later in life. D. firms hiring workers of varying ability. E. college students completing high-wage majors.
Refer to the graph shown. If the firm is producing 120 units of output, profit is equal to:
A. $30. B. $38. C. $0. D. ?$38.
Which of the following gives the correct relationship between nominal and real interest rates?
A. Nominal interest rate + real interest rate = expected inflation rate B. Real interest rate = nominal interest rate + expected inflation rate C. Nominal interest rate = real interest rate - expected inflation D. Nominal interest rate = real interest rate + expected inflation rate