If the Federal Reserve unexpectedly decides to sell bonds, which of the following will most likely happen in the short run?
What will be an ideal response?
The supply of loanable funds will decrease, which will exert upward pressure on the interest rate
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If the price is less that the firm’s AVC, the firm’s output
A. is determined by the relationship between MC and AVC. B. will drop to zero. C. will change to where MC = ATC. D. will increase to where P = AC.
ADC makes latex-free tubing for blood pressure instruments. This is
A. an output of ADC. B. an input into the production of health. C. both an input and an output. D. These concepts do not apply to this sort of product.
With regard to its profits and losses, how is the short run different from the long run for a perfectly competitive firm?
What will be an ideal response?
When RBC economists work out a detailed numerical example of a more general theory, they are performing
A) econometrics. B) number theory. C) calibration. D) topology.