According to the Monetarist view, the impact of expansionary monetary policy will be:
a. the same in the long run as in the short run.
b. the same regardless of whether the effects of the policy are anticipated or unanticipated.
c. a higher price level (inflation).
d. a decrease in short-run prices and an increase in long-run prices.
c
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Answer the following statement(s) true (T) or false (F)
1. An attorney that finds a loophole in a law has formed a creative response to the law. 2. The amount of output produced by two firms in a Cournot oligopoly setting is greater than that produced by a monopoly, but smaller than that which would be produced if the market were perfectly competitive. 3. According to the Bertrand model, price and output is higher under oligopoly than under competition. 4. A firm has monopoly power when it is the single seller of a good or service. 5. If a monopoly desires to raise its profits, it can simply raise the price it charges.
The extra pay people earn in exchange for undertaking risky or otherwise undesirable work is called
A) a compensating differential. B) arbitrage income. C) overtime pay. D) a fringe benefit.
Q: How many economists does it take to change a light bulb? A: All. Because then you will generate employment, more consumption, moving the aggregate demand curve to the right. This joke represents the view of
A) classical economists. B) Keynesian economists. C) economists who contend that money illusion never occurs. D) economists who conclude that wages and prices are very flexible.
Kara receives a promotion at work, which increases her income. We would expect Kara’s demand for
a. each good she purchases to remain unchanged.
b. normal goods to decrease.
c. substitute goods to increase.
d. inferior goods to decrease.