If the Fed orders an expansionary monetary policy, describe what will happen to the following variables relative to what would have happened without the policy:
a. The money supply
b. Interest rates
c. Investment
d. Consumption
e. Net Exports
f. The aggregate demand curve
g. Real GDP
h. The price level
a. The money supply increases
b. Interest rates fall
c. Investment increases
d. Consumption increases
e. Net exports increase
f. The aggregate demand curve shifts to the right
g. Real GDP rises
h. The price level rises
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The firm's profit-maximizing price is
a. P1. b. P2. c. P3. d. P4.
If Terry sets the agenda for an election, she can possibly manipulate the outcome based on the order of events to be voted on
Indicate whether the statement is true or false
One difference between perfect competition and monopolistic competition is that
a. in perfect competition, firms cannot earn a long-run economic profit b. in perfect competition, firms take full advantage of economies of scale in long-run equilibrium; in monopolistic competition, firms do not c. only under perfect competition is there ease of entry and exit d. in monopolistic competition, the firm's demand curve is horizontal; in perfect competition, the firm's demand curve slopes downward e. in perfect competition, there are many firms; under monopolistic competition, there are few firms
The Washington Consensus argued that transition should begin with
a. The creation of macroeconomic stability b. A free floating exchange rate c. De-privatization d. All of the above e. None of the above