If the economy is fully employed, then the inflationary costs of expansionary policy are likely to be:
a. low, and the unemployment gains minimal.
b. low, and the unemployment gains large
c. high, and the unemployment gains minimal.
d. high, and the unemployment gains large.
c
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In order to maximize its profit in the short run, an airline should offer an additional flight whenever
a. its marginal revenue exceeds its sunk costs b. it marginal revenue exceeds its average total cost c. the average seat price exceeds its sunk costs d. the average seat price exceeds its average total cost e. the additional revenue exceeds the additional costs
Which of the following indicates that the law of supply applies to makers of soda?
A) An increase in the price of a soda leads to an increase in the quantity of soda supplied. B) An increase in the price of a soda leads to an increase in the supply of soda. C) An increase in the price of a soda leads to an increase in the demand for soda. D) A decrease in the price of a soda leads to an increase in the quantity of soda demanded. E) A decrease in the price of a soda leads to an increase in the supply of soda.
Input-output analysis is a technique used to solve complicated market equations.
Answer the following statement true (T) or false (F)
In December 1999 people feared that there might be computer problems at banks as the century changed. Consequently, people wanted to hold relatively more in currency and relatively less in deposits. In anticipation banks raised their reserve ratios to have enough cash on hand to meet depositors' demands. These actions by the public
a. would increase the multiplier. If the Fed wanted to offset the effect of this on the size of the money supply, it could have sold bonds. b. would increase the multiplier. If the Fed wanted to offset the effect of this on the size of the money supply, it could have bought bonds. c. would reduce the multiplier. If the Fed wanted to offset the effect of this on the size of the money supply, it could have sold bonds. d. would reduce the multiplier. If the Fed wanted to offset the effect of this on the size of the money supply, it could have bought bonds.