In the long run, a sustained increase in money supply growth relative to the growth rate of potential real output will most likely:
a. cause the nominal interest rate to fall
b. cause the real interest rate to fall.
c. reduce the natural rate of unemployment.
d. none of the above
d
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During 2008-2013, the Fed initiated several rounds of "quantitative easing.". Under this policy, the Fed
a. increased its purchases of financial assets and thereby injected additional reserves into the banking system. b. increased its purchases of financial assets, which reduced the reserves available to the banking system. c. reduced its purchases of financial assets and thereby injected additional reserves into the banking system. d. reduced its purchases of financial assets and thereby reduced the quantity of reserves available to the banking system.
Which of the following examples reflects monopolistic competition?
a. After modernizing equipment, Mitchell, Inc operates at the lowest average cost of production. b. After making long-run adjustments, Slattery, Inc operates at 90 percent of capacity. c. Long-run adjustments allows Gable, Inc to operate at 100 percent capacity. d. Production refinements allow Jones, Inc. to operate at a level where average total cost is minimized.
Suppose the United States chose to legalize the production and use of marijuana, but also decided to put a tax on the good. After doing so, suppose that the price that consumers paid fell, and the amount that growers got to keep also fell. This would
A. be shockingly counter-intuitive, because there would be no supply-and-demand model that could explain it. B. indicate that the demand-side effect was greater than the supply-side effect. C. suggest that the supply curve is vertical. D. indicate that the demand-side effect was smaller than the supply-side effect.
A demand schedule is a table showing how the ____ of some product during a specified period of time changes as ____ changes, holding all other determinants of quantity demanded constant.
A. demand; the price of its complement B. demand; the quantity supplied C. quantity demanded; the price of its substitute D. quantity demanded; the price of that product