New classical economists advocate less government intervention than the new Keynesian school of thought
a. True
b. False
Indicate whether the statement is true or false
True
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If nominal GDP is $230 for a period and real GDP is $200 for the same period, what is the GDP price index for this period?
What will be an ideal response?
A perfect monopoly:
A. can be a single seller or small group of firms. B. controls 100 percent of the market for a product. C. can offer a product at the lowest cost possible. D. always engages in price discrimination.
Which of the following is a reason for firms to bundle products?
A. To clear the old stock of the product B. To extract additional profit from a customer base with heterogeneous product demand C. To increase customer welfare and satisfaction D. To extract additional profit by charging higher prices for the goods in a bundle
If the Federal Reserve wished to engage in contractionary monetary policy, it could
A. lower the reserve ratio. B. lower the Federal Funds rate target. C. increase the primary credit rate. D. purchase government debt.