If the government wished to shift aggregate demand to the right, it might:
A. increase government spending.
B. increase income taxes.
C. pressure the Fed to decrease the money supply.
D. Any of these things might cause aggregate demand to shift to the right.
A. increase government spending.
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When weighing the efficiency of monopolistic competition, which of the following should be considered?
i. The information provided by advertising ii. Product variety iii. The extra cost of excess capacity A) ii only B) i and iii C) ii and iii D) i, ii, and iii E) iii only
In the above figure, the slope across the arc between c and d is
A) 1/2. B) 1. C) 4/3. D) 2.
Changes in the federal funds rate usually result in
A) changes in both short-term and long-term interest rates with more of an effect on short-term interest rates. B) changes in both short-term and long-term interest rates with equal effect on both. C) changes in both short-term and long-term interest rates with more of an effect on long-term interest rates. D) no change in either short-term or long-term interest rates.
Exhibit 30-4
?
A. overproduces; Q1 B. underproduces; Q2 C. overproduces; Q1 - Q2 D. underproduces; Q2 - Q1