The aggregate demand curve is Y = 15 - 0.2? when the inflation rate falls from 6 percent to 5 percent. Then, output increases from 13.8 to 17. The response of monetary policy to the inflation decline has been ________
A) autonomous tightening
B) automatic adjustment
C) autonomous easing
D) to increase autonomous spending
E) none of the above
C
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Suppose a perfectly competitive firm faces the following short-run cost and revenue conditions: ATC = $12; AVC = $10; MC = $15; MR = $13. The firm should
A) decrease output. B) increase output. C) increase price. D) change nothing.
A wealthy Japanese executive decides to buy a large amount of U.S. assets. This would contribute to
a. a deficit in the U.S. current account b. a deficit in the U.S. capital account c. a surplus in the U.S. current account d. a surplus in the U.S. capital account e. a deficit in the total balance of payments
The key difference between oligopoly and other market structures is the interdependence among producers.
Answer the following statement true (T) or false (F)
Which of the following is NOT a characteristic of high-growth Asian economies?
A) stable macroeconomic policies B) similar governments C) credible commitments to expanding access to health care D) the development of skilled workforces