According to rational expectations theory,
A) increasing the money supply to reduce unemployment will always be successful.
B) decreasing the money supply to reduce unemployment will usually be successful.
C) increasing the money supply to reduce unemployment will not be successful because of an offsetting decrease in prices.
D) increasing the money supply to reduce unemployment will not be successful because of an offsetting increase in prices.
D
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Inflation occurs over time as a result of
A) long-run aggregate supply increasing faster than aggregate demand. B) long-run aggregate supply increasing faster than short-run aggregate supply. C) decreases in aggregate demand. D) aggregate demand increasing faster than long-run aggregate supply.
An isoquant is a curve that shows all the combinations of two inputs that will produce the same level of output
Indicate whether the statement is true or false
Macroeconomists are able to study the entire economy by
a. ignoring much of the data available in order to reduce the number of markets that need to be studied b. studying only a few markets at a time c. simply adding up all the prices and quantities in individual markets d. aggregation which reduces the number of markets that need to be studied e. dividing total output by the number of markets
One of the reasons that Kodak and Fuji films advertise so much is that
a. they want to stimulate market demand b. each hopes to create a natural monopoly c. they are in a perfectly competitive industry where advertising is the difference between success and failure d. they want to develop brand loyalty e. they want to increase their price elasticities of demand