When the Fed purchases U.S. government securities through the open market, the money supply:
a. increases, the interest rate falls, and the quantity of money demanded increases.
b. falls, the interest rate falls, and the quantity of money demanded increases
c. increases, the interest rate increases, and the quantity of money demanded increases.
d. falls, the interest rate increases, and the quantity of money demanded falls.
e. falls, the interest rate falls, and the quantity of money demanded falls.
a
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Absent any violations of the first welfare theorem, the competitive market production level of a good will be the same as that chosen by a social planner whose goal includes (but is not necessarily limited to) efficiency.
Answer the following statement true (T) or false (F)
The above (incomplete) table provides information about the relationships between output and various cost measures. The marginal cost per unit when increasing output from 14 to 17 units is
A) $20. B) $30. C) $380. D) None of the above answers is correct.
The short-run break-even price is
A) the price at which a firm's total revenues exceed total costs. B) the point at which the firm's total costs are maximized. C) the price at which a firm's total revenues equal its total costs. D) the point at which the firm's implicit costs are maximized.
Which of the following statements best describes how economic growth is represented in the AD/AS diagram?
a. In the AD/AS diagram, long-run economic growth due to productivity increases over time will be represented by a dramatic shift to the right of aggregate supply. b. In the AD/AS diagram, long-run economic growth due to productivity increases over time will be represented by a gradual shift to the right of aggregate supply. c. In the AD/AS diagram, short-run economic growth due to productivity increases over time will be represented by a dramatic shift to the right of aggregate supply. d. In the AD/AS diagram, short-run economic growth due to productivity increases over time will be represented by a gradual shift to the right of aggregate supply.