One of the reasons that expansionary monetary policy has not been as effective as expected in recent years is that:
A. potential output was rising quickly.
B. the fed funds rate was high.
C. banks were holding significant excess reserves.
D. Congress continued to run deficits.
Answer: C
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Which point or points on the above figure illustrate a short-run equilibrium?
A) Point A B) Point C C) Point B D) Points A and C
If a production process generates pollution, then a competitive market will produce more of the good than is socially optimal because
A) firms take all costs into consideration. B) firms incur all costs of production but ignore some of them. C) firms ignore the costs of production that they do not incur. D) firms set price equal to social marginal cost.
The largest marital status category of black single parents in 1960 was "married-spouse absent."
Indicate whether the statement is true or false
Explain why a superstar basketball player can earn $3 million a year, year after year, without facing competition from other players who would work for considerably less