If producers have imperfect information about the general price level and sometimes misinterpret changes in the general price level as changes in relative prices, then
A) the short-run aggregate supply curve is vertical.
B) the short-run aggregate supply curve slopes upward.
C) the aggregate demand curve is vertical.
D) the aggregate demand curve is horizontal.
B
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Household income is spent on all of the following except one. Which is the exception?
a. services b. tax payments c. durable goods d. nondurable goods e. dividends
Your total utility for 5 milk shakes would be
Demand and Utility Table for Milk Shakes
A. $2.
B. $4.
C. $7.50.
D. $15.
Monopoly and monopsony markets have low barriers to entry.
a. true b. false
Assume there is no leakage from the banking system and that all commercial banks are loaned up. The required reserve ratio is 16%. If the Fed sells $5 million worth of government securities to the public, the change in the money supply will be
A. -$31.25 million. B. -$21 million. C. -$16 million. D. -$11.75 million.