A change in monetary policy affects
A) consumption expenditure, government expenditures on goods and services, and net exports.
B) consumption expenditure, productivity, and net exports.
C) government expenditures on goods and services because it affects the government's budget balance.
D) consumption expenditure, investment, and net exports.
E) investment, government expenditures on goods and services, and net exports.
D
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Market failure is the inability of
a. buyers to interact harmoniously with sellers in the market. b. a market to establish an equilibrium price. c. buyers to place a value on the good or service. d. some unregulated markets to allocate resources efficiently.
Figure 10-11
In , which of the following would most likely cause the movement from point E1 to point E2?
a.
an increase in the expected inflation rate
b.
a decrease in the expected inflation rate
c.
a major technological advance
d.
a temporary reduction in oil prices
Suppose a price floor is imposed on eggs above their equilibrium price. The likely result will be:
A. a higher equilibrium price for eggs as the supply curve for eggs shifts left. B. a lower equilibrium price for eggs as the demand curve for eggs shifts left. C. a decrease in the quantity of eggs demanded. D. an increase in the quantity of eggs demanded.
A firm would decide to shut down if its production resulted in
A) MR < ATC. B) ATC > AVC. C) AFC > AVC. D) MR < AVC.