In monopolistic competition, excess capacity results from
A) the presence of a large number of buyers.
B) the mobility of firms into and out of the industry.
C) imperfect information about price.
D) product differentiation.
D
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The aggregate price level is likely to rise if ________
A) the long-run real interest rate rises B) the long-run nominal interest rate rises C) the stock of money grows faster than real GDP D) real GDP grows faster than the stock of money
When good weather speeds the check-clearing process, float tends to ________ causing the Fed to initiate ________ open market ________
A) decrease; defensive; sales B) decrease; dynamic; sales C) decrease; defensive; purchases D) increase; dynamic; purchases
The Swiss National Bank established the practice of targeting monetary aggregates in ________
A) 1929 B) 1975 C) 2001 D) 2008
Advocates of real business cycle theories argue that all of the following could cause a recession except
a. a fall in consumer expectations. b. natural disasters. c. higher taxation. d. increases in the price of oil.