In the very short run ________
A) the real interest rate will be affected by changes in the nominal rate
B) monetary policy has an immediate effect on inflation
C) the inflation rate is determined by the federal funds rate
D) all of the above
E) none of the above
A
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The notion that when the price of an input falls, a firm's marginal cost curve shifts down and overall production increases so that more of every input is employed is known as
a. the output effect. b. the substitution effect. c. the input effect. d. the cost effect.
Which of the following cost curves is not generally U-shaped? a. AFC
b. AVC. c. ATC. d. MC.
A binding minimum wage causes the quantity of labor demanded to exceed the quantity of labor supplied
a. True b. False Indicate whether the statement is true or false
If the President and Congress agree to balance the budget during a recession, then the appropriate monetary policy is
A. no change from the current policy. B. reduce the growth of the money supply. C. constant growth of the money supply. D. increase the growth of the money supply.