Which of the following is a positive microeconomics statement?
A) The central bank should increase the nation's money supply.
B) The increase in the nation's money supply helped push the nation's unemployment rate down in the short run.
C) Ford Motor Company's new advertising campaign ended up hurting General Motors's sales.
D) The local government ought to spend more on recreational activities.
C
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Refer to Figure 4.1, which shows Molly's and Ryan's individual demand curves for compact discs per month. Assuming Molly and Ryan are the only consumers in the market, what is the market quantity demanded at a price of $9?
A) 2 B) 4 C) 6 D) 10
In the United States during the 1950s and 1960s
A) the inflation rate was frequently less than 2 percent a year. B) prices rose sharply. C) prices fell. D) there was zero inflation.
Managers are at the heart of the market process
Indicate whether the statement is true or false
If the Fed's monetary policy reaction function does not change, then when inflation decreases the Fed responds by ________ the real interest rate, which ________ consumption and investment spending, which ________ output.
A. increasing; increases; decreases B. decreasing; decreases; decreases C. increasing; decreases; decreases D. decreasing; increases; increases