The intent of indexing is to:
a. reduce inflation gradually
b. shift the long-run Phillips curve to the right.
c. take most of the sting out of inflation.
d. raise tax revenue automatically during inflation.
c
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Everything else held constant, if the sum of the required reserve ratio and the excess reserve ratio is less than one, an increase in the currency-deposit ratio causes the M1 money multiplier to ________ and the money supply to ________
A) decrease; increase B) increase; decrease C) decrease; decrease D) increase; increase
The condition under which a cartel can maintain its stability is that:
a. the barriers to entry should be relaxed. b. an identical product should be produced by the colluding firms. c. there should be a large number of firms in a market. d. there should be legal barriers to share agreements. e. the products of the colluding firms should be highly differentiated.
Increases in capital stock are due to
A. increasing productivity. B. labor saving technology. C. investment. D. depreciation.
Figure 17.2 depicts a firm's marginal revenue product curve. If the marginal product of the second worker is 10 units of output, what is the price of output?
A. $3 B. $4 C. $5 D. $6