If the AD curve is relatively flat, the Fed is willing to accept large changes in output to keep the price level stable.
Answer the following statement true (T) or false (F)
True
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Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is Qd = 20,000 - 200P, where P is the price of a cubic yard of concrete and Qd is the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. The Cournot model describes the competition in this market. If Kate produces 10,000 cubic yards per year, what is Alice's inverse demand function?
A. P = 75 - 0.005QK B. P = 75 - 0.005QA C. P = 50 - 0.005QK D. P = 50 - 0.005QA
If protective import-restricting tariffs are imposed by a country, in the majority of cases that nation's consumers end up
A. paying a higher price and consuming less of the good than they otherwise would. B. paying a lower price and consuming less of the good than they otherwise would. C. paying a lower price and consuming more of the good than they otherwise would. D. paying a higher price and consuming more of the good than they otherwise would.
An increase in the interest rate represents an easing of monetary policy.
Answer the following statement true (T) or false (F)
In the capital market, households ________ savings and firms ________ funds.
A. supply; supply B. demand; demand C. demand; supply D. supply; demand