With cost-push inflation in the short run, there will be:
A. An increase in real GDP
B. A leftward shift in the aggregate demand curve
C. A decrease real GDP
D. A decrease in unemployment
C. A decrease real GDP
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In which market structure do firms consider the actions of their rivals when setting prices and output?
a. monopoly b. oligopoly c. perfect competition d. both monopoly and perfect competition e. monopolistic competition
The fundamental criticism from the efficiency perspective of AFDC and other antipoverty programs is that
a. they do not help families with unemployed fathers. b. the benefits are too low. c. they offer disincentives to earning income. d. the tax on this income is too low.
Suppose that Firms A and B each produce high-resolution computer monitors, but Firm A can do so at a lower cost. Cassie and David each want to purchase a high-resolution computer monitor, but David is willing to pay more than Cassie. Which of the following market outcomes is efficient?
a. Firm A produces a monitor that Cassie buys. David does not purchase a monitor. b. Firm A produces a monitor that David buys. c. Firm B produces a monitor that Cassie buys. David does not purchase a monitor. d. Firm B produces a monitor that David buys.
To decrease the money supply, the Fed may sell government securities or lower taxes
Indicate whether the statement is true or false