A ceiling on interest rates is likely to lead to
a. an increase in lending activity.
b. more rapid capital formation by business.
c. increases in hiring of labor.
d. a shortage of loanable funds.
d
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Suppose Always There Wireless serves 100 high-demand wireless consumers, who each have a monthly demand curve for wireless minutes of QdH = 200 - 100P, and 300 low-demand consumers, who each have a monthly demand curve for wireless minutes of QdL = 100 - 100P, where P is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always There Wireless charges $0.25 per minute. How many minutes will low-demand consumers purchase?
A. 75 B. 175 C. 200 D. 100
If the central bank is facing the zero bound constraint and announces a higher inflation target,
A) the real interest rate will increase, which will decrease aggregate expenditure. B) the real interest rate will decrease, which will increase aggregate expenditure. C) the nominal interest rate will increase, which will decrease aggregate expenditure. D) the nominal interest rate will decrease, which will increase aggregate expenditure.
Structural unemployment
a. arises from a mismatch between available jobs and workers' skills or geographic location b. is short-term joblessness experienced by those re-entering the labor force after a long absence c. occurs because of changes in seasons, tourist patterns, and similar factors d. does not occur when the economy is at full employment e. is joblessness resulting from business cycle movements
Exhibit 6-1 Business cycle
In Exhibit 6-1, the recession phase of the business cycle can be represented by point(s):
A. CDE. B. BCD. C. EFG. D. A and E.