In the long run, monopolistically competitive firms:
A. have excess capacity and produce at the minimum of average total cost.
B. produce at the minimum of average total cost.
C. have excess capacity.
D. charge prices equal to marginal cost.
Answer: C
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In the prisoners' dilemma game, each player
A) has only one possible strategy. B) can choose from two strategies. C) can choose from three strategies. D) can choose from four strategies.
Everything else held constant, an autonomous monetary policy easing ________ aggregate ________
A) increases; demand B) decreases; demand C) decreases; supply D) increases; supply
Along the long-run Phillips curve, the economy is at an unemployment level that corresponds to an output level lower than the potential output level
a. True b. False Indicate whether the statement is true or false
The Fed loses some control over the interest rate once it targets the money supply,
a. but the interest rate doesn't move in an inappropriate direction with respect to the Fed's monetary policy b. and the interest rate often moves in the opposite of the targeted direction c. but it can still dictate what the interest rate will be d. and loses as well control over open market operations which are linked to the interest rate e. but still maintains indirect control through open market operation