Economists assume that business firms have many goals, and profit maximization is just one of them
a. True
b. False
Indicate whether the statement is true or false
False
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Over the past twenty years the Fed's policy experience
a. has been good and improving b. is an indicator that economic policy is confused c. shows a focus on full employment d. reveals a lack of concern about unemployment e. has been generally poor and deteriorating
Assume that the central bank purchases government securities in the open market. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to real GDP and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. Real GDP rises, and nominal value of the domestic currency falls. b. Real GDP falls, and nominal value of the domestic currency rises. c. Real GDP rises, and the nominal value of the domestic currency remains the same. d. Real GDP rises, and nominal value of the domestic currency rises. e. There is not enough information to determine what happens to these two macroeconomic variables.
Wages in excess of their equilibrium level help explain
a. frictional but not structural unemployment. b. structural but not frictional unemployment. c. both frictional and structural unemployment. d. neither frictional nor structural unemployment.
A firm's advertising can help rivals
A) if fit focuses on general problem that the product addresses B) if it focuses on a secret ingredient that only this firm possesses C) if rivals do not advertise D) if rivals advertise