Why will it difficult for the Fed to use monetary policy to direct the economy back to full employment and price stability from the recession of 2008-2009?
What will be an ideal response?
The time lags between changes in monetary policy and when the changes exert an impact on output and prices are long and variable.
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What is "game theory"?
What will be an ideal response?
Transfer payments are
a. payments made to individuals who are employed by the government. b. payments made to individuals who provide goods and services to the government. c. transfers of income from taxpayers to recipients who do not provide current goods and services for the payments. d. omitted from the government expenditure figures.
Which of the following will cause a decrease in market equilibrium price and an increase in equilibrium quantity?
A. An increase in supply. B. A decrease in supply. C. A decrease in demand. D. An increase in demand.
Which of the following is an accurate argument in support of market power?
A. It contributes to efficient production when there are diseconomies of scale. B. It restricts output and raises prices, contributing to more efficient use of resources. C. It provides greater ability to fund research and development. D. It provides the economic profit necessary for survival and efficient production in a market.