The longer and more unpredictable that the policy lags are, the stronger the case for active stabilization policy
a. True
b. False
Indicate whether the statement is true or false
False
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If the market price is lower than a perfectly competitive firm's average total cost, the firm will
A) immediately shut down. B) continue to produce if the price exceeds the average fixed cost. C) continue to produce if the price exceeds the average variable cost. D) shut down if the price exceeds the average fixed cost. E) shut down if the price is less than the average fixed cost.
The price of peanuts increases. At the same time, we see the price for Jelly rise. How does this affect the market for peanut butter?
a. The demand curve will shift to the left; the supply curve will shift to the left b. The demand curve will shift to the left; the supply curve will shift to the right c. The demand curve will shift to the right; the supply curve will shift to the left d. The demand curve will shift to the right; the supply curve will shift to the right
According to the search model, a computerized used car search service should
a. reduce the amount of search b. not affect the amount of search c. increase price dispersion d. reduce price dispersion e. lower the marginal benefit of search
Whenever central bankers face more than one goal, the policy framework requires:
A. central bankers to make their priorities clear. B. the central bank to always focus on inflation first. C. central bankers to focus on all goals, no matter what. D. economic growth to be the top priority.