When the economy is at full employment and inflation develops, the government creates a surplus budget by cutting its own spending and raising taxes. The Fed would
a. reduce the legal reserve requirement, increase the discount rate, and buy securities on the open market
b. reduce the legal reserve requirement, reduce the discount rate, and sell securities on the open market
c. reduce the legal reserve requirement, reduce the discount rate, and buy securities on the open market
d. increase the legal reserve requirement, reduce the discount rate, and sell securities on the open market
e. increase the legal reserve requirement, increase the discount rate, and sell securities on the open market
E
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The horizontal summation of all individual demands at different given prices results in the:
A. market supply curve. B. market demand curve. C. individual demand curve. D. equilibrium demand and supply curves.
Refer to Table 1-1. Using marginal analysis, by how many hours should Lydia extend her nail salon's hours of operations?
A) 2 hours B) 3 hours C) 4 hours D) 5 hours E) 6 hours
If the price of one input changes, the firm will change its use of that input only.
Answer the following statement true (T) or false (F)
The greatest benefit to an economy from international trade is:
A. greater employment in the export sector of the economy. B. the economic power it gives a nation over other countries. C. full employment of its labor force. D. consumption beyond domestic production possibilities.