A monopolist produces at the minimum point of the average total cost curve in the long run
a. True
b. False
Indicate whether the statement is true or false
False
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On an average, growth in per capita income is associated with a:
A) fall in inequality. B) fall in poverty. C) rise in poverty. D) rise in inequality.
The Phillips curve will shift up with ________ or ________
A) a positive supply shock; an increase in expected inflation B) a positive supply shock; a decrease in expected inflation C) a negative supply shock; an increase in expected inflation D) a negative supply shock; a decrease in expected inflation
"Lender of last resort" means that the central bank
a. has to lend money to failing banks. b. should lend money to individuals if their bankruptcy would threaten the banking system. c. should lend money to banks that are suffering short-term liquidity shortages. d. should lend money to pay for government deficits. e. None of the above
When the economy is producing at a quantity greater than its long-run aggregate supply:
A. it is pushing some of its resources to operate beyond capacity. B. the economy is experiencing greater economic growth. C. it causes a bubble to form in one of its major sectors. D. we are experiencing a recession.