The business cycle depicts:
A. fluctuations in the general price level.
B. the phases a business goes through from when it first opens to when it finally closes.
C. the evolution of technology over time.
D. short-run fluctuations in output and employment.
Answer: D
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An economic growth model explains
A) how changes in the money supply affect real interest rates. B) changes in government tax policies over time. C) the growth rate of the price level over time. D) changes in real GDP per capita in the long run.
The buying and selling of government securities by the Fed is known as:
a. open market operations. b. federal bond operations. c. treasury bond operations. d. open bonds operations. e. discount rate operations.
Suppose there are only two steel firms in the steel industry and their prices are equal to or very close to their ATCs. This circumstance suggests that
a. steel firms are not profit maximizing b. steel has no close substitutes c. the demand for steel is weak d. quantity supplied is less than quantity demanded at the market prices e. close substitutes are produced in other industries
What happens when wages are set above the equilibrium level by law?
What will be an ideal response?