An economy in which output has decreased and prices have increased would suggest that there has been a:
A. negative demand side shock.
B. negative supply side shock.
C. positive demand side shock.
D. positive supply side shock.
Answer: B
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The decline in the role of manufacturing over the last four decades has caused our economy to be
A. less vulnerable to inventory cycles. B. more vulnerable to inventory cycles. C. has not affected the vulnerability to inventory cycles. D. caused an increase in frictional unemployment.
When a non-discriminating monopolist is maximizing profit, then
a. its price equals its marginal cost b. its price equals its marginal revenue c. it is producing all units for which marginal revenue exceeds marginal cost d. its supply curve intersects the market demand curve e. its marginal cost curve intersects the market demand curve
Contestable markets improve the performance of imperfect markets with
a. government regulations. b. the threat of entry. c. advertising. d. tacit collusion.
The twelve regional Federal Reserve banks are responsible for:
A. Accepting deposits from nonbank businesses. B. Providing currency to other countries. C. Lending money to individuals. D. Lending reserves to private banks.