This curve is
A. a Phillips curve.
B. a Laffer curve.
C. an aggregate supply curve.
D. an aggregate demand curve.
B. a Laffer curve.
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Corporations have a separation and control problem because
A) owners and managers frequently have different incentives. B) most of the profits are reinvested. C) the shareholders control the firm. D) taxes are paid only by the board of directors.
If the interest rate is 10 percent and a business pays $100,000 for a lease on a factory, the explicit costs are
A) $110,000. B) $10,000. C) $100,000. D) $90,000.
If an increase in inflation is expected, which of the following events is the least likely to occur?
a. There will be an upward movement along the long-run Phillips curve. b. Nominal GDP will increase. c. Nominal wage rates will increase at the same rate as expected inflation. d. A worker's reservation wage will rise at the same rate as expected inflation. e. Unemployment rate will increase.
If the reserve ratio is 15 percent, and banks do not hold excess reserves, and people hold only deposits and no currency, then when the Fed sells $25.5 million worth of bonds to the public, bank reserves
a. increase by $25.5 million and the money supply eventually increases by $382.5 million. b. increase by $25.5 million and the money supply eventually increases by $170 million. c. decrease by $25.5 million and the money supply eventually decreases by $382.5 million. d. decrease by $25.5 million and the money supply eventually decreases by $170 million.