How long is the long run?
A. However long it would take a firm to have at least one variable cost
B. However long it would take a firm to vary all of its costs
C. A defined, set period of time, usually a year
D. None of these defines the long run.
Answer: B
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The FOMC no longer sets targets for M1 and M2 to meet its goals of price stability and high employment
Indicate whether the statement is true or false
At an output ________ of a firm's short run average total cost curve, a firm can use its fixed capital input at a lower average cost but only by using its variable input at a higher average cost.
A. equal to the highest level B. prior to the minimum point C. beyond the maximum point D. beyond the minimum point
An analysis of the incidence of a unit tax on suppliers versus a unit tax on demanders shows us that the _____ of a tax may be different from the _____ of a tax
a. actual burden; distribution b. payment; distribution c. amount; incidence d. actual burden; legal assignment
Assume that the Fed lowers the required reserve ratio. How will this affect the money supply?
a. It would decrease. b. It would increase. c. It would remain unchanged. d. It depends on the value of interest rates.