The short run is best defined as:
A. one year or less.
B. a period of time sufficiently short that all factors of production are variable.
C. a period of time sufficiently short that at least one factor of production is fixed.
D. the period of time between quarterly accounting reports.
Answer: C
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Which of the following statements is (are) correct? Over the past 20 years, the Federal Reserve
a. has only targeted monetary aggregates. b. has varied between an emphasis on interest rate control and targeting of monetary aggregates. c. has only emphasized control of the interest rate. d. None of the above
Assume a price floor is set above the equilibrium price. The result is a shortage
a. True b. False Indicate whether the statement is true or false
What situation gives rise to a surplus?
A. The current price of the good is above its market clearing price. B. The current price of the good is below its market clearing price. C. Supply of the good decreases, but the market price is not permitted to change. D. The market clearing price of the good is too high.
The views of the new classical economists are consistent with a vertical aggregate supply curve in both the short run and the long run.
Answer the following statement true (T) or false (F)