If there is an increase in the demand for automobiles, and at the same time auto workers receive a substantial raise, what will happen to equilibrium price and quantity in the automobile market?
a. Price and quantity will rise.
b. Price and quantity will fall.
c. Price will rise; quantity will fall.
d. Quantity will rise; price change cannot be determined.
e. Price will rise; quantity change cannot be determined.
E
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In the simple deposit expansion model, if the Fed purchases $100 worth of bonds from a bank that previously had no excess reserves, deposits in the banking system can potentially increase by
A) $10. B) $100. C) $100 times the reciprocal of the required reserve ratio. D) $100 times the required reserve ratio.
How do investment banks use the results of their research?
What will be an ideal response?
If the short run aggregate supply curve is flat, the Phillips curve will be
a. flat b. steep c. horizontal d. upward sloping
A short-run production function was estimated asQ = ?0.002L3 + 0.16L2At 60 units of labor, what is marginal product?
A. -2.4 B. 1.2 C. 4.1 D. 2.4 E. 6.3