Producers are willing to offer greater quantities for sale at higher prices because
What will be an ideal response?
they have the incentive to pay the increasing opportunity cost of resources necessary to attract them from alternative uses
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A market often characterized by one-on-one bargaining is a(n) ________ market.
A. general B. informal C. formal D. specific
The Fed's open market operations involve
a. buying and selling of government bonds b. changes of the discount rate c. setting the required reserve ratio d. buying and selling corporate bonds e. a policy of last resort used to avert a financial crisis
Which of the following assumptions is held by both the classical view and the new classical view?
A) rational expectations B) flexible wages and prices C) flexible wages and sticky prices D) adaptive expectations E) a and b
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P4 and Y1. B. P4 and Y2. C. P5 and Y1. D. P5 and Y2.