The development of new technology typically
a. shifts the supply curve to the right
b. reduces profits
c. results in a downward movement along a supply curve
d. increases costs of production
e. shifts the demand curve to the right
A
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According to the intertemporal substitution effect, a fall in the price level will
A) decrease the real value of wealth, which increases the quantity of real GDP demanded. B) cause the interest rate to fall so that investment increases and the quantity of real GDP demanded increases. C) increase net exports, which causes the quantity of real GDP demanded to increase. D) increase the real value of wealth, which raises the interest rate so that the quantity of real GDP demanded decreases.
Price controls are usually enacted
a. as a means of raising revenue for public purposes. b. when policymakers believe that the market price of a good or service is unfair to buyers or sellers. c. when policymakers tax a good. d. All of the above are correct.
A firm that can sell as much as it can produce at the market price is likely operating in:
A. a perfectly competitive market. B. a monopoly C. a monopolistically competitive market. D. an oligopoly
Policymakers are often reluctant to turn to unconventional monetary policy measures because:
A. such policies are potentially too powerful. B. such policies require Congressional approval and Congress is often slow to act. C. such policies require coordination with the central bankers of foreign countries. D. they are uncertain of the quantitative impact of using them.