In the face of an increase in oil prices, if the government's primary objective is to keep prices from falling, then policymakers should
a. reduce taxes.
b. reduce the money supply.
c. increase government spending.
d. increase aggregate supply through regulation.
B
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The idea behind the Phillips curve is that ________
A) tight labor markets lead to inflationary pressures B) when the unemployment rate is low, wages will increase C) when firms raise wages to attract new workers, prices will also increase D) all of the above E) none of the above
Which of these activities will most likely impose an external cost?
a. An athlete works out at a gym. b. A secretary smokes a cigarette in a crowded break room. c. A young mother pushes her baby in a stroller. d. A construction worker eats a hotdog during his lunch break.
Money is critical in facilitating market exchanges and the specialization that these exchanges permit.
Answer the following statement true (T) or false (F)
Use the above figure. The total revenue earned by the monopolistically competitive firm is
A. $285. B. $180. C. $300. D. $255.