In the Keynesian framework, as long as output is ________ the equilibrium level, unplanned inventory investment will remain positive and firms will continue to ________ production
A) below; lower
B) above; lower
C) below; raise
D) above; raise
B
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The process involved in bringing oil to world markets can take years. Substitutes for oil-based products such as gasoline are limited. As a result
A) the supply of oil is very inelastic and the demand for gasoline is inelastic over short periods of time. B) the supply of oil is very elastic and the demand for oil is very elastic over short periods of time. C) the supply of oil and the demand for oil shift to the right over short periods of time. D) the supply of oil and the demand for oil are both perfectly elastic over short periods of time.
If a firm in a perfectly competitive market sells 100 units of output and total revenues are $500, which of the following statements are true? (i) Marginal revenue equals $5. (ii) Average revenue equals $5. (iii) Price equals $5
a. (i) only b. (iii) only c. (i) and (ii) only d. (i), (ii), and (iii)
The Fed conducts an open market purchase of Treasury bills of $10 million. If the required reserve ratio is 0.10, what change in the money supply can be expected using the oversimplified money multiplier?
a. $100 million b. $10 million c. 0 d. ?$10 million e. ?$100 million
Developing countries are damaged by dead capital because
A. it reduces too much household saving. B. it results in inefficiencies that greatly reduce the rate of return on capital investment. C. it replaces too many workers, creating unemployment. D. it must be sold as scrap.