Total revenue increased for a firm operating in the elastic range of its demand curve. Which of the following statements is correct?
A. The firm must have raised price.
B. The firm must have lowered price.
C. Quantity demanded must have increased.
D. both a and c
E. both b and c
Answer: E
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A decrease in consumer wealth will
A) not change autonomous consumption and rotate the consumption function upward. B) decrease autonomous consumption and shift the consumption function downward. C) not change autonomous consumption and rotate the consumption function downward. D) increase autonomous consumption and shift the consumption function upward.
To reduce the money supply, the Fed can ______.
a. buy bonds b. raise reserve requirements c. lower the discount rate d. decease the interest rate paid on reserves
Every point on the long-run average cost curve is
A. on a short-run marginal cost curve. B. on a short-run average variable cost curve. C. on a short-run average total cost curve. D. also a minimum point on a short-run average cost curve.
Discretionary fiscal policy is often initiated on the advice of the:
A. Congressional Budget Office B. Council of Economic Advisers C. Joint Economic Committee D. Federal Reserve Board