Refer to the graph below. Assume that the economy is initially at equilibrium at point C, and that the government has adopted a "hands-off" policy approach. If demand-pull inflation occurs, then the final long-run equilibrium point will be point __; while if cost-push inflation occurs (starting at point C), then the final long-run equilibrium point will be point __.
A. A; C
B. D; B
C. A; A
D. D; A
A. A; C
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At any point in time, a single bank can loan an amount equal to
A) its excess reserves. B) its required reserves. C) its government securities. D) the amount of loans the bank made in the past. E) its total reserves.
The above figure shows the payoff matrix for two firms, A and B, selecting an advertising budget. The firms must choose between a high advertising budget and a low advertising budget. Firm B's dominant strategy
A) does not exist. B) is to copy firm A. C) is to select a high advertising budget. D) is to select a low advertising budget.
In an open-market purchase the Federal Reserve ________ government bonds from the public and the supply of bank reserves ________.
A. sells; decreases B. buys; increases C. buys; decreases D. sells; increases
Economic rent is
A. the sum of the payment actually received by an owner of a factor of production and her reservation price. B. the payment actually received by an owner of a factor of production. C. the reservation price of an owner of a factor of production. D. the difference between the payment actually received by the owner of a factor of production and her reservation price.