A decrease in demand is shown graphically by a:
a. Downward movement along the demand curve
b. Decrease in the cost of production
c. Movement up along the demand curve
d. Shift of the demand curve to the left
d. Shift of the demand curve to the left
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Decreases in the NAIRU represent a:
A) leftward shift in the aggregate demand curve. B) leftward shift of the long-run aggregate supply curve. C) rightward shift of the long-run aggregate supply curve. D) rightward shift in the aggregate demand curve.
According to the monetarists, the rise in (M1) velocity in the mid-1990s can be attributed to
a. changes in the type of bank deposits that are available to the public. b. new legal ceilings imposed on the deposit rates financial institutions are permitted to pay depositors. c. the phasing out of legal ceilings on the deposit rates financial institutions are allowed to pay depositors. d. Both a and b e. Both a and c
Ramsey pricing avoids cross subsidy
Indicate whether the statement is true or false
Which incentive scheme would simultaneously elicit accurate information about feasible plant production levels and motivate managers to perform up to potential (in the following schemes, B is the bonus payment, Q is actual plant output, and Qf is the
manager's estimate of feasible output)? A) B = 0.4Q B) B = 0.4(Q - Qf) C) B = 0.4Qf + 0.3(Q - Qf) if Q > Qf D) B = 0.4Qf - 0.6(Q - Qf) if Q < Qf E) B = 0.4Qf - 0.6(Q - Qf) if Q > Qf