If not all prices adjust instantly to changing economic circumstances, an unexpected fall in the price level leaves some firms with higher-than-desired prices, and these higher-than-desired prices depress sales and induce firms to ________ the quantity of goods and services they produce.
a) increase substantially
b) increase slightly
c) reduce
d) make no changes to
Ans: c) reduce
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A graph shows the wages of factory workers. The slope of the line is positive for periods when the wage rate is
A) falling. B) rising. C) high but not rising any higher. D) low.
A firm sells 100 . units per week. It charges $15 per unit, the average variable costs are $10, and the average costs are $25 . The firm should
a. Shut-down as the firm is making a loss of $10,00 . per week b. Shut-down as the firm cannot cover the fixed costs c. Continue operating as the firm is covering all the variable costs and some of the fixed costs d. Shut-down because it is cost effective to pay off the remaining fixed costs
Has M2 always been a useful tool for forecasting inflation? Explain.
What will be an ideal response?
Although the Federal Reserve had traditionally made discount loans only to ________, in response to the financial crisis in 2008 the Fed made primary dealers eligible for discount loans as well
A) commercial banks B) government agencies C) investment banks D) mortgage lenders