Assuming that a is positive, theories of short-run aggregate supply are expressed mathematically as
a. quantity of output supplied = natural rate of output + a(actual price level - expected price level).
b. quantity of output supplied = natural rate of output + a(expected price level - actual price level).
c. quantity of output supplied = a(actual price level -expected price level) - natural rate of output.
d. quantity of output supplied = a(expected price level - actual price level) - natural rate of output.
a
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In the United States, the Federal Reserve pursues an inflation targeting policy of keeping inflation below 2 percent
Indicate whether the statement is true or false
Winner's curse is likely to happen in which of the following auctions?
A) unexplored oil reserves B) corn stored in a warehouse C) 1,000 ton of iron ore D) U.S. Treasury Bonds
If the demand for corn is elastic, then:
a. there are not many substitutes for the consumption of corn. b. the price elasticity of demand for corn is less than -1. c. a decrease in price will reduce total revenue for corn producers. d. an increase in price will increase total revenue for corn producers. e. consumers will continue buying the same quantity even if price increases.
The "invisible hand" refers to the control that government must exercise over a market economy
a. True b. False Indicate whether the statement is true or false