The Fed ________ influence the real interest rate in the short run and ________ influence the real interest rate in the long run
A) can; can
B) cannot; can
C) might be able to; might be able to
D) cannot; cannot
E) can; cannot
E
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In the short run, a perfectly competitive firm suffering a loss
a. will close if P < AVC b. will shut down operations if P < MC c. cannot leave the industry even if P < AVC d. can sell off all its resources to competitors e. can raise the price to increase revenues
Which of the following would qualify as an aggregate demand shock?
A. A seasonally expected increase in oil prices B. An anticipated tax cut C. An unexpected reduction in consumer confidence D. An unexpected increase in oil prices
The concept that market forces in the macroeconomy can remedy a recession is referred to as:
Keynesianism: the use of expansive fiscal and monetary policies to resolve a recession. The self-correcting mechanism The consumption function The paradox of thrift
Which of the following will definitely occur when there is an increase in the supply of and decrease in demand for MP3 players?
A. an increase in equilibrium quantity B. an increase in equilibrium price C. a decrease in equilibrium price D. a decrease in equilibrium quantity