If monetary policy is fully anticipated by workers and firms, then it has no effect on the level of output; it affects only the price level
Indicate whether the statement is true or false
true
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In the short run, if the Fed undertakes expansionary monetary policy, the effect will be to shift the:
A. AD curve in to the left. B. SAS curve down. C. SAS curve up. D. AD curve out to the right.
The quantity of new cars increases by 10 percent. If the price elasticity of demand for new cars is 1.25, the price of new cars will fall by
A) 2.5 percent. B) 8 percent. C) 10 percent. D) 12.5 percent.
The perceived specie shortage led colonists to invent:
(a) Country money (b) Paper money (c) Inflationary dollars (d) Conservative money
Answer the following statements true (T) or false (F)
1) When making output decisions, managers of firms producing a joint product with fixed proportions need to pay attention to the separate prices of the joint goods. 2) If a firm is producing a joint product with variable proportions, if the price of one of the joint products changes, to maximize profits, managers must adjust both the total production of the jointly produced product and the products' proportions. 3) If a firm is producing a joint product and the price of one of the products increases, the marginal benefit of producing more of that product increases. 4) If a firm is producing a joint product with variable proportions, producing more of one product means producing more of the other product. 5) Because the decision involves the production of two goods, marginal analysis cannot be used to determine the profit-maximizing proportions of jointly produced products.