A reduction in the central bank's inflation target will result in:
A. the long-run aggregate supply curve having an upward slope.
B. a decrease in potential output.
C. no change in potential output.
D. an increase in potential output.
Answer: C
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Use the following production possibilities frontiers to answer the next question.
Curve (a) is the initial frontier for the economy, and the nation is initially producing combination P. A shift from curve (a) to curve (b) suggests that the economy can then increase its production of capital goods
A. so as to produce the combination L. B. and consumer goods simultaneously, except at the point where the curve intersects the vertical axis. C. but will have to hold constant its production of consumer goods. D. only if it reduces its production of consumer goods.
U.S. Treasury bills pay no interest but are sold at a ________. That is, you will pay a lower purchase price than the amount you receive at maturity
A) premium B) collateral C) default D) discount
Under which one of the following market structures are sellers most likely to consider the reaction of rival sellers when they set the price of their product?
a. oligopoly b. perfect competition c. pure monopoly d. monopolistic competition
Suppose that Far North Canadian Lumber, Ltd., sells lumber in Canada at a price of $1,000 per 1,000 board feet and exports the same lumber to the United States at a price of $600 per 1,000 board feet. U.S. Lumber, Inc., produces and sells lumber for $700 per 1,000 board feet in the United States. How large an antidumping duty will the United States apply to lumber imports from Far North Canadian Lumber, Ltd.?
a. $100 b. $200 c. $300 d. $400