Suppose the economy is in long-run equilibrium. If there is an increase in the supply of labor as well as an increase in the money supply, then we would expect that in the short-run,
a. real GDP will rise and the price level might rise, fall, or stay the same.
b. real GDP will fall and the price level might rise, fall, or stay the same.
c. the price level will rise, and real GDP might rise, fall, or stay the same.
d. the price level will fall, and real GDP might rise, fall, or stay the same.
a
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With a natural monopoly,
A) no regulation is necessary because it is a natural monopoly. B) regulation takes the form of forcing competition from new firms. C) regulation takes the form of forcing the company out of business. D) regulation can take the form of average cost pricing to allow coverage of costs. E) regulation takes the form of breaking the company into several competing firms.
If the cross price elasticity of demand between two goods is negative, then the two goods are
A) substitutes. B) complements. C) unrelated. D) independent.
In 2015 the euro depreciated more than 30 percent against the dollar. As a result, European:
A. exports declined, dragging down the economy. B. imports rose, boosting the economy. C. exports rose, boosting the economy. D. imports declined, dragging down the economy.
If the Federal Reserve wished to engage in expansionary monetary policy, it could
A. raise the reserve ratio. B. raise the Federal Funds rate target. C. sell government debt. D. lower the primary credit rate.