Equilibrium
What will be an ideal response?
A situation in which the price has reached the level where quantity supplied equals quantity demanded.
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Answer the following statement(s) true (T) or false (F)
1. An indifference curve is a construct used by economists to show how tastes for an individual change. 2. There are an infinite number of choices faced by a consumer that are shown along an indifference curve. 3. Indifference curves fill the fourth quadrant of the plane. 4. If the marginal value of beef is $8 per pound, then the consumer is willing to pay at most $8 for an additional pound of beef. 5. The marginal value of a good is the dollar value that the consumer receives, on average, from each unit of the good purchased.
When the United States was under the gold standard, recessions were ________ and long-term inflation was ________
A) more frequent; virtually nonexistent B) less frequent; virtually nonexistent C) more frequent; prevalent D) less frequent; prevalent
Which Federal Reserve Bank president is always on the Federal Open Market Committee?
A) New York B) Chicago C) St. Louis D) Boston
In the monetary small open-economy model with a fixed exchange rate, the domestic
A) government loses control over the level of domestic government spending. B) government loses control over the level of domestic taxes. C) government loses control over the level of domestic government spending and domestic taxes. D) central bank loses control over the domestic stock of money.