The government has traditionally dealt with externalities by directive rather than by price
Indicate whether the statement is true or false
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The short-run aggregate supply curve is upward sloping because in the short run the
A) money wage rate changes but the price level does not. B) price level changes but the money wage rate does not. C) both the money wage rate and the price level change. D) neither the money wage rate nor the price level can change.
Holding supply constant, a reduction in demand leads to
A) lower prices and higher quantity supplied. B) lower prices and lower quantity supplied. C) higher prices and higher quantity supplied. D) higher prices and lower quantity supplied.
Which of the following is not correct?
a. The president of the New York Federal Reserve bank is the only Federal Reserve Regional Bank President who gets to vote at every meeting of the Federal Open Market Committee. b. The Fed's policy decisions influence the economy's rate of inflation in the short run and the economy's employment and production in the long run. c. The Fed's primary monetary policy tool is open-market operations. d. All of the above are correct.
When do diminishing marginal returns occur?
(A) When some workers increase output but others decrease it. (B) When extra workers will have to wait their turn to be productive. (C) When the marginal product of labor increases as the number of workers increases. (D) When additional workers increase total output at a decreasing rate.