Identify the correct statement about changes in money supply.
a. A decrease in money supply causes interest rates to fall
b. A decrease in money supply causes investment spending to increase.
c. A decrease in money supply causes gross domestic product to increase.
d. A decrease in money supply causes investment spending to decrease.
e. A decrease in money supply causes aggregate expenditure to increase.
d
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If most shocks to the economy are ________ shocks, then ________
A) aggregate demand; inflation stabilization policy will also stabilize activity in the short-run B) permanent aggregate supply; inflation stabilization policy will also stabilize activity in the short-run C) temporary aggregate supply; inflation stabilization policy has no impact on economic activity in the long-run D) all of the above E) none of the above
Which of the following is a problem of economic dynamics?
a. Determining how an equilibrium changes when an exogenous variable changes. b. Finding the Nash equilibrium in the Prisoners' Dilemma. c. Solving a simple monopoly's profit-maximization problem. d. Modeling the process by which an equilibrium is achieved.
Under the buy one, get one free regime, the:
A. budget set expands. B. price is reduced by 50 percent. C. budget line rotates counterclockwise. D. indifference curve is changed.
The government regulates food additives
A. To restrain the market power of food producers. B. To prevent externalities. C. To keep food producers from dominating their markets. D. To assess their safety.