Consider two similar economies hit by the same temporary negative supply shock. In the economy with the more credible monetary policy, there will be ________
A) smaller increases in both inflation and the real interest rate
B) a smaller increase in inflation and larger increase in the real interest rate
C) a smaller increase in inflation and larger decrease in output
D) a smaller increase in output and larger increase in the real interest rate
A
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In the Battle of the Sexes game,
a. Fred and Ethel are best off choosing the activity they prefer. b. Fred is better off attending the opera with Ethel than having Ethel attend the boxing match with him. c. Ethel is better off attending the boxing match with Fred than having Fred attend the opera with her. d. Fred and Ethel would both be better off choosing to attend either activity together than going alone to the activity they prefer.
In which of the following situations will the equilibrium price of wheat increase and the change in the equilibrium quantity of wheat be indeterminate?
a. if supply and demand both decline b. if supply and demand both rise c. if supply declines and demand rises d. if supply rises and demand declines e. if supply remains constant and demand rises
Which one of the following is a final good or service?
A. Chemical pesticides used by a farmer to control the incidence of crop disease
B. Microcomputer chips for a new computer
C. A radio bought by General Motors for use in its new line of cars
D. A will drawn up by your personal attorney
Total surplus increases under monopoly when compared to perfect competition.
a. true b. false