?
In Exhibit 3-11, in Panel B the movement from point A to point C describes a(n):
A. increase in both demand and supply, where the increase in supply is relatively bigger.
B. decrease in both demand and supply, where the decrease in supply is relatively bigger.
C. increase in demand and a decrease in supply, where the decrease in supply is relatively bigger.
D. decrease in demand and increase in supply, where the increase in supply is relatively bigger.
Answer: D
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Refer to the figure above. What is the profit-maximizing price for the monopolist?
A) $3 B) $4 C) $5 D) $6
In deriving LM curves, holding the real money supply constant while raising real GDP causes us to
A) trace up along an LM curve. B) trace down along an LM curve. C) shift the LM curve to the right. D) shift the LM curve to the left.
Which requirement for perfect competition rules out trade associations or other collusive arrangements in which firms work together to influence price?
A. Freedom of entry and exit B. Homogeneity of product C. Perfect information D. Numerous small firms and customers
How does conventional monetary policy work in the short run?
A. Fed sets target FFR, open market operations, bank reserves and money supply changes, market FFR and other short run interest rates change, consumption changes, and AD changes B. fed prints money, inflation increases, money loses value