Starting from a position of macroeconomic equilibrium at below the full-employment level of real GDP, an increase in the money supply will:
A. raise interest rates, prices, and reduce real GDP.
B. raise interest rates, lower prices, and leave real GDP unchanged.
C. raise interest rates, lower prices, and leave real GDP unchanged.
D. lower interest rates, raise prices, and increase real GDP.
Answer: D
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A) welfare. B) health care. C) education. D) highway construction.
If the market power of a labor union enables it to offset the market power of an oligopolistic firm, this is called
a. monopolistic competition b. cartel pricing c. price discrimination d. contestable markets e. countervailing power
A decrease in the perceived riskiness of Company A stock ________ the risk premium investors require to purchase Company A stock and ________ the price of Company A stock.
A. increases; increases B. decreases; decreases C. decreases; increases D. increases; decreases
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A) reflect the cost of regulating the industry, plus the marginal cost of the product. B) allow monopoly profits to the producer. C) reflect the actual average cost of providing the services to the customer. D) are determined by competition in other geographic markets.