If the expected price level exceeds the actual price level in an economy, _____
a. firms increase production in the short run
b. firms decrease production in the short run
c. firms maintain production in the short run but increase prices
d. firms maintain production in the short run but decrease prices
e. firms raise prices in the short run.
b
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In the long run all costs are variable costs. Why?
What will be an ideal response?
Who owns the Fed?
a. The federal government. b. The states. c. The District Federal Reserve Banks. d. All banks. e. Member banks.
The simultaneous import and export of goods in the same industry by a particular country is known as interindustry trade
a. True b. False Indicate whether the statement is true or false
In its day-to-day operations, the Fed focuses on
a. an unemployment rate target b. an inflation rate target c. an interest rate target d. a money demand curve target e. several economic targets together