Which of the following would most likely cause the supply of wheat to increase?
What will be an ideal response?
a technological advance that lowers the cost of producing wheat
You might also like to view...
Refer to Figure 10.9. Other things equal, a decrease in the nominal money supply by the Fed is best represented as a change in equilibrium from
A) point A to point B. B) point A to point D. C) point C to point B. D) point C to point D.
The minimum legal price that can be charged in a market is:
A. full economic price. B. a price floor. C. a price ceiling. D. non-pecuniary price.
An assumption on the LRAS curve is
A. an increase in the average price level occurs. B. labor productivity is increasing. C. technology remains unchanged. D. the economy is operating to the right of the production possibilities curve.
Answer the following questions true (T) or false (F)
1. The Federal Reserve could target both the money supply and the interest rate at the same time if it controlled money demand along with money supply. 2. Inflation targeting has been adopted by the central banks of several countries including the European Central Bank. 3. Inflation targeting has typically been accompanied by lower inflation.