Suppose that the demand and supply of money are initially in equilibrium, and that the demand for money increases. A monetary authority interested in keeping the money supply constant and the interest rate low must _____
Fill in the blank(s) with the appropriate word(s).
give up pursuing both goals at the same time.
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The figure above shows that in 1996, unemployment was equal to about ________ and the inflation rate was equal to about ________
A) 7.0 percent; 3.0 percent B) 3.0 percent; 5.5 percent C) 5.5 percent; 3.0 percent D) 6.0 percent; 4.0 percent
If there is a market outcome in which the marginal benefit to consumers of the last unit produced is equal to its marginal cost of production and consumer surplus plus producer surplus is maximized, then
A) maximum deadweight loss occurs. B) profits are maximized. C) costs are minimized. D) economic efficiency is achieved.
When one country can produce a product at a ________ cost in terms of other goods, that country is said to have a(n) ________ advantage.
A. higher; comparative B. higher; absolute C. lower; comparative D. lower; absolute
In this market, an increase in the parameter c would: a. increase both price and quantity
b. increase price and decrease quantity. c. decrease both price and quantity. d. increase quantity and decrease price.