A change in which variable will change the market demand for a product?
A) the price of the product
B) population
C) technology
D) the prices of substitutes in production
Answer: B
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Input-output analysis was developed by Wassily Leontief
a. True b. False Indicate whether the statement is true or false
The Monetary Control Act of 1980 extended the Fed's authority to:
A. impose required-reserve ratios on all depository institutions. B. control the discount rate. C. control the federal funds rate. D. carry out a massive federal bailout of failed savings and loan institutions.
If monetary policymakers do not want the current inflation rate to increase, yet they observe increasing aggregate demand from higher government purchases, will they have to accept a higher inflation target? Explain.
What will be an ideal response?
Consider a price ceiling imposed on a monopoly. For what quantities will the monopoly's new marginal revenue curve be horizontal at the ceiling price?
a. For quantities where the demand curve lies above the ceiling price. b. For quantities where demand is elastic. c. For quantities where marginal cost is rising. d. Marginal revenue will be constant and equal to the ceiling price for all quantities.