If the Fed were to push unemployment below NAIRU, it is likely that:
A. inflation will increase.
B. deflation will send the economy into a deflationary spiral.
C. the dual mandate will be met.
D. the economy would be operating efficiently.
A. inflation will increase.
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Interactive marketing is
A. advertising targeted at specific consumers. B. advertising that targets a specific audience and allows the consumer to follow up directly by placing direct product orders usually through television or radio. C. advertising intended to reach as many consumers as possible. D. advertising that permits a consumer to follow up directly by searching for more information and placing direct product orders.
Refer to Scenario 1-1. Had the firm not produced and sold the last 400 t-shirts, would its profit be higher or lower, and if so by how much?
A) Its profit would be $800 higher. B) Its profit would be $800 lower. C) Its profit would be $4,800 higher. D) Its profit would be $4,000 lower.
Monopoly pricing prevents some mutually beneficial trades from taking place. These unrealized, mutually beneficial trades are
a. not a concern if a market is perfectly competitive. b. a deadweight loss to society. c. a function of the reduction in the quantity produced by a monopolist in comparison to a competitive market. d. All of the above are correct.
Decreases in product prices cause the consumer's:
A. budget line to shift outward from the origin. B. production possibilities curves to shift inward to the origin. C. budget line to shift inward to the origin. D. production possibilities curves to shift outward from the origin.