Reducing government expenditure and increasing taxation is an example of which of the following policies?
(a) An expansionary monetary policy.
(b) A contractionary monetary policy.
(c) An expansionary fiscal policy.
(d) A contractionary fiscal policy.
Answer: (d) A contractionary fiscal olicy.
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A monopolist faces an average total cost of $10 when it produces 400 units of its product. If it sells the 400 units at $6 per unit, ________
A) the monopolist makes a profit of $600 B) the monopolist makes a loss of $600 C) the monopolist makes a profit of $1,600 D) the monopolist makes a loss of $1,600
Refer to the above table. The four-firm concentration ratio is
A) 86.5 percent. B) 33.3 percent. C) 13.3 percent. D) 11.6 percent.
If expected inflation increases, the short-run Phillips curve will shift to the left so that inflation will be higher at any given unemployment rate
a. True b. False Indicate whether the statement is true or false
Central banks control exchange rates by intervention. If a nation such as Japan wished to peg its market rate at a certain level, such as ¥100 = $1, what should it do if the actual market rate began to depreciate to ¥125 = $1?
a. It should purchase dollars with its own currency. b. It should sell dollars from its treasury and retire its own currency. c. It should increase its GDP to increase exports. d. It should petition the IMF for a rate change.