Controlling the quantity of money and interest rates to influence aggregate economic activity is called
A) foreign policy.
B) monetary policy.
C) fiscal policy.
D) bank antitrust policy.
B
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A profit maximizing price taker will produce at a level where
a. the wage equals the marginal product of labor. b. the marginal revenue product of labor equals the price of their output. c. the wage rate equals the price of their output. d. the marginal revenue product of labor equals the wage rate.
In the above figure, the firm is breaking even at points
A) a and c. B) b and d. C) c and d. D) a and d.
A firm that is a monopolist in the output market and a monopsonist in the input market
A) will hire the same amount of labor as if perfect competition prevailed in both markets, but pay a lower wage. B) will restrict the level of output but not that of employment compared to the perfectly competitive case. C) will hire less labor but pay the same wage compared to the perfectly competitive case. D) will hire less labor and pay a lower wage compared to the perfectly competitive case.
This year, Shirts Inc purchased $1,000 worth of silk from the Silky Silkworm Company, $100 worth of buttons from Barney's Buttons, and $200 worth of thread from Tracy's Thread Company. Shirts Inc sold the shirts they produced for $2,000 . As a result of these transactions, how much did Shirts Inc contribute to GDP this year?
a. $700 b. $1,300 c. $2,000 d. $2,700 e. $3,300