If ________ equilibrium output ________, the price level decreases.
A. actual; exceeds potential aggregate output
B. potential; is below actual aggregate output
C. potential; is equal to actual aggregate output
D. actual; is below potential aggregate output
Answer: D
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Because the applications for "diversity immigration" into the U.S. far exceed the quota every year, the slots are filled through:
A. An annual lottery B. A first-come-first-served system C. A bidding system, allocation through prices D. Political connections
If the desired reserve ratio is 10 percent and there is no currency drain, then a $100 increase in the monetary base leads the banking system to increase the quantity of money by
A) $1,000. B) $400. C) $900. D) $110. E) $1,100.
The battery packs used in electric and hybrid automobiles are one of the largest cost components for manufacturing these cars. As the price of these batteries decline, we expect that the:
A) supply curve for electric and hybrid autos will shift rightward. B) supply curve for electric and hybrid autos will shift leftward. C) demand curve for electric and hybrid autos will shift rightward. D) demand curve for electric and hybrid autos will shift leftward.
Cost minimization is the process of making optimal use of all of the inputs whose quantities are
a. set in the short run. b. set in the intermediate run. c. set in the long run. d. variable in the short and long run.