According to the new classical model, the output cost of reducing inflation
a. is the costs of the revenue lost by printing less money.
b. is the lost income from the large recession that will occur as aggregate demand falls.
c. may be small if the policy to reduce inflation is seen as credible by the public.
d. will be zero if it is unanticipated.
C
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Mutual funds are primarily held by
A) financial institutions. B) households. C) nonfinancial businesses. D) the Social Security trust fund.
A monopolist has demand and cost curves given by:
QD = 1000 - 2P TC = 5,000 + 50Q a. Find the monopolist's profit-maximizing quantity and price. b. Find the monopolist's profit.
Which of the following is the clearest evidence of employment discrimination against minority employees?
a. the average wage of minority workers is lower than the average wage of whites. b. the average hours worked by minority employees exceeds the hours worked by whites. c. the mean number of years of schooling of minority workers is lower than that of whites. d. the average wages of minority employees are lower than the average wages of whites with similar productivity characteristics.
Which of the following statements is most correct?
A. Fisher's assumption about money velocity being stable in the long run was incorrect. B. The velocity of M2 is relatively stable across all time periods. C. The velocity of M2 is less stable than the velocity of M1. D. The velocity of M2 is more volatile in the short run than the long run.