The data in the above table show that the economy will be in a short-run macroeconomic equilibrium at a price level of
A) 90.
B) 110.
C) 100.
D) 120.
D
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________ mergers can lead to increased market power and, as a result, ________ the total surplus in the market.
A) Horizontal; increase B) Vertical; increase C) Vertical; decrease D) Horizontal; decrease
If banks pay back their borrowings from the central bank:
a. The monetary base will decrease. b. Excess reserves will rise. c. The M2 multiplier will fall. d. The monetary base will rise.
In 2008–2010, American policymakers decided to risk
A. higher inflation for the sake of decreasing unemployment. B. higher unemployment to hold down inflation. C. increasing taxes for the sake of reducing the budget deficit. D. reducing government spending for the sake of balancing the budget.
Trace the cause-effect chain that results from a restrictive monetary policy.
What will be an ideal response?