Refer to the figure below. The growth of access to the Internet will cause the marginal:
A. benefit curve to shift from MB2 to MB1.
B. cost curve to shift from MC2 to MC1.
C. benefit curve to shift from MB1 to MB2.
D. cost curve to shift from MC1 to MC2.
Answer: D
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In Figure 17-3 above, suppose we are working under the assumption of the Lucas model. Suddenly, monetary policy becomes more expansionary and every firm believes that the higher prices bid on their product is not being enjoyed by any other firm
We would picture this as a movement between points A) A and C. B) A and B. C) D and B. D) D and A. E) A and D.
Unemployment compensation payments:
a. fall during a recession and thus increase the severity of the recession. b. rise during a recession and thus reduce the severity of the recession. c. rise during a recession and thus increase the severity of the recession. d. rise during inflationary episodes and thus reduce the severity of the inflation.
Figure 4.3 illustrates the demand for tacos. Assume that tacos and beer are complements. A decrease in the price of beer would bring about a movement from:
A. point a to point c. B. point c to point a. C. D2 to D0. D. D0 to D2.
Suppose the central bank implements a monetary expansion that is not fully anticipated by financial markets. Given this information, we would expect
A) stock prices to rise. B) stock prices to fall. C) stock prices to remain unchanged. D) an ambiguous effect on stock prices. E) none of the above