Sellers in a perfectly competitive market make special arrangements to deal with particular customers and stand to lose value if their relationship with those customers ends

Indicate whether the statement is true or false

F

Economics

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Monetary policy has no effect on the equilibrium interest rate if

A) the inflation rate is zero. B) the economy is in the liquidity trap. C) velocity is constant. D) the economy is at full employment.

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Changes in business activity are

A) referred to as business fluctuations. B) referred to as the ebb and flow of business. C) always undesirable. D) caused by the changing seasons every year.

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If a wealthy nation such as the United States trades with a poorer, less developed nation like Cambodia, then it is likely true that:

A. the United States is taking advantage of Cambodia and is the only beneficiary to the trade. B. Cambodia is pressured to enter trade and not benefiting at all. C. both the United States and Cambodia can benefit from trading. D. the United States is being charitable and not benefiting from the trade at all.

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Economics

Given an upward sloping aggregate supply curve, which of the following changes in the aggregate demand curve is observed when the Fed reduces the money supply?

a. The aggregate demand curve shifts leftward, lowering real GDP and the price level
b. The aggregate demand curve shifts leftward, raising real GDP and the price level.
c. The aggregate demand curve shifts leftward, lowering real GDP but raising the price level.
d. The aggregate demand curve shifts rightward, raising real GDP and the price level.
e. The aggregate demand curve shifts rightward, lowering real GDP but raising the price level.

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Economics