When free mobility of factors of production is added to a common market, the result is a customs union.
a. true
b. false
b. false
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A monopolist faces a demand curve that
A) is perfectly horizontal at the market price. B) is below the marginal revenue curve. C) is downward sloping. D) coincides with the industry supply.
Compounding:
A. is beneficial to savers, but costly to borrowers. B. is beneficial to borrowers, but costly to savers. C. is beneficial to borrowers and savers alike. D. is costly to both borrowers and savers.
Which of the following is an unconventional monetary policy?
a. lending to banks in unprecedented volume b. lending to companies other than banks c. reducing the federal funds rate to zero d. All of these are unconventional monetary policies.
Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower