In the long run, the expansion path is
A) horizontal.
B) vertical.
C) diagonal.
D) Not enough information.
D
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Which of the following might result in an underestimation of GDP?
a. Significant underground activity such as trade in illegal drugs b. Sales of used cars c. Many intermediate goods d. Imported goods e. Exported goods
If a monopolist's marginal revenue is $3.00 and its marginal cost is $4.50, it will increase its profits by:
A. reducing output and raising price. B. reducing both output and price. C. increasing both price and output. D. raising price while keeping output unchanged.
It is impossible for a country to have a current account surplus and a balance of payments deficit at the same time.
Answer the following statement true (T) or false (F)
Prior to the mortgage debt crisis, the most frequently employed restrictive monetary policy tool was
a. raising the reserve ratio. b. selling bonds in the open market. c. raising the discount rate. d. raising the prime interest rate.