As real GDP per year increases along the short-run aggregate supply (SRAS) curve, the SRAS curve
A) becomes increasingly steep.
B) begins to level out.
C) shifts inward.
D) does not change.
A
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Based on the Taylor rule, in the 1980s, monetary policy was
A) too tight. B) too easy. C) just about right. D) too tight in the first half of the decade and too easy in the second half.
Exhibit 10-6 Two-Firm Payoff Matrix
Suppose costs are identical for the two firms in Exhibit 10-6. Each firm assumes without formal agreement that if it sets the high price its rival will not charge a lower price. Under these "tit-for-tat" conditions, equilibrium will be established by:
A. Widget Co. charging the high price and Ajax Co. charging the low price. B. Widget Co. charging the high price and Ajax Co. charging the high price. C. Widget Co. charging the low price and Ajax Co. charging the low price. D. Widget Co. charging the low price and Ajax Co. charging the high price.
The distinction between microeconomics and macroeconomics is
A. determined by economists in a clear and concise manner. B. narrowly drawn, and microeconomic analysis often relies on macroeconomic tools. C. often blurred because aggregates are made up of individuals and firms. D. clearly drawn, and there is no overlap between them.
The following are impediments to economic growth EXCEPT
A. dead capital. B. bureaucratic inefficiency. C. human capital development. D. lack of economic freedom.