Refer to Figure 13-4. Given the economy is at point A in year 1, what will happen to the price level in year 2?
A) It will fall. B) It will rise.
C) It will remain constant. D) not enough information to answer the question
B
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The Federal Reserve cannot target both the money supply and the interest rate because it does not control
A) bank reserves. B) open market operations. C) money demand. D) the discount rate.
According to monetarists, changes in the money supply have long-lasting effects on the equilibrium level of real GDP
a. True b. False Indicate whether the statement is true or false
Mike is an automobile worker. Because of technological changes in the way automobiles are produced and the increased use of automation, Mike was recently laid off and is currently seeking another job. Mike is best described as being
a. frictionally unemployed b. structurally unemployed c. seasonally unemployed d. not in the labor force e. cyclically unemployed
Both firms in a Cournot duopoly would enjoy higher profits if:
A. the firms simultaneously reduced output below the Nash equilibrium level and one firm reduced output below the Cournot Nash equilibrium level, while the other firm continued to produce its Cournot Nash equilibrium output. B. one firm reduced output below the Cournot Nash equilibrium level, while the other firm continued to produce its Cournot Nash equilibrium output. C. each firm simultaneously increased output above the Nash equilibrium level. D. the firms simultaneously reduced output below the Nash equilibrium level.