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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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
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.