Increases in the availability of natural resources will affect the aggregate supply curve such that it
A. shifts inward and becomes flatter.
B. shifts inward.
C. shifts outward.
D. becomes flatter.
E. becomes steeper.
Answer: C
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Which of the following is NOT one of the Fed's monetary policy tools?
A) last resort loans B) the required reserve ratio C) the income tax rate D) buying and selling U.S. government securities
The main reason that policy makers are reluctant to force the economy to a zero percent inflation rate is that
A. Unacceptable levels of unemployment might result. B. Businesses would not be able to raise prices. C. Real incomes would fall. D. Businesses would postpone production decisions. E. The PPI formula would need to be recalculated.
Product differentiation:
a. refers to the attempt of firms to make their products look like those of the other firms in the industry. b. refers to the attempt of firms to make real or apparent differences in essentially substitutable products look different in the minds of the consumers. c. refers to the advantage big firms have in research and development. d. is a common characteristic of a perfectly competitive market structure. e. is only employed in a monopoly market structure.
Gross domestic product is the market value of all final goods and services produced in the economy of a given territory during a defined period of time
a. True b. False Indicate whether the statement is true or false