Before the financial crisis of 2007, inflation was on the rise. According to the MP curve, this would lead to ________
A) an increase in the real interest rate
B) an upward shift of the MP curve, if policymakers opted for autonomous tightening
C) a decrease in aggregate output
D) all of the above
E) none of the above
D
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Refer to Mexico and Japan. What is the cost of producing one unit of food in Japan?
a. 2 bolts of cloth per bushel.
b. 4/3 bolts of cloth per bushel.
c. 3/4 bolts of cloth per bushel.
d. none of the above.
Encouraging international trade will
A) slow economic growth as many workers lose their jobs to foreign workers. B) speed economic growth as workers specialize and trade with others. C) speed economic growth because international trade limits the harm done by property rights. D) slow economic growth when a country is forced to specialize and trade with other countries. E) speed economic growth as workers diversify their knowledge and limit trade.
Sweet Treats sells its extra-large cupcakes for $12 each and the firm has a constant marginal cost of $8 per cupcake, which is equal to its (constant) average total cost. If Sweet Treats does not sell a cupcake the day it is produced, it is sold as day-old for $4. Sweet Treats should hold the number of cupcakes in inventory that makes the probability of selling that quantity of cupcakes or more
equal to ________. A) 0.60 B) 0.40 C) 0.50 D) 1.00
An economic system in which relative prices change to reflect changes in supply and demand for different goods and services is known as a
A) socialist system. B) communist system. C) ration. D) market.