If perfectly competitive firms exit a market, the
A) market supply curve shifts leftward.
B) price of the good or service falls.
C) profits of the remaining firms decrease.
D) output of the industry increases.
A
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Out of a set of feasible alternatives, an optimizer should choose the alternative with the:
A) highest net benefit. B) highest opportunity cost. C) lowest total cost, regardless of benefit. D) highest total benefit, regardless of cost.
In 2008, Timothy Geithner referred to investment banks, money market mutual funds, hedge funds, and other financial firms engaged in similar activities as the
A) shadow banking system. B) securitization market. C) commercial banking system. D) secondary market.
Considering the future
A) is irrelevant to macroeconomics. B) is key to macroeconomic modelling. C) has a limited impact on macroeconomic analysis. D) matters only under special circumstances.
The immediate objective of a nominal anchor is to reduce the variability of ________
A) monetary policy targets B) expected inflation C) aggregate demand D) central bank credibility