The logic behind the tradeoff between inflation and unemployment is that high aggregate demand puts upward pressure on wages and prices while raising output
a. True
b. False
Indicate whether the statement is true or false
True
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Macroeconomics focuses on the economy as a whole
a. True b. False
When one currency appreciates, another currency must depreciate
a. True b. False Indicate whether the statement is true or false
How is monopoly different from perfect competition?
A.In a monopoly, there is only one seller, who can set prices as he chooses. In perfect competition,firms have some control over prices, but not as much as monopoly.. B.In a monopoly, there is only one seller, who can set prices as he chooses. In perfect competition,firms are price takers. C.In a monopoly, there is more than one seller, but they can set prices as they choose.In perfect competition, firms are price makers. D.In a monopoly, they are always protected by government barriers, whereas in a perfectively competitivecompany, they have no such protection.
If the Fed increases the discount rate, commercial banks pay a ________ interest rate if they borrow money from the Fed and will therefore ________
A) higher; borrow more money from the Fed and make more loans to consumers B) higher; deposit more money into their reserves at the Fed C) lower; borrow more money from the Fed and make more loans to consumers D) lower; borrow less money from the Fed and make fewer loans to consumers E) higher; borrow less money from the Fed and make fewer loans to consumers