If the central bank pursues a monetary policy that is more expansionary than what firms and people expect, then the central bank must be trying to
A) boost output in the short run.
B) constrain output in the short run.
C) constrain prices.
D) boost prices in the short run.
A
You might also like to view...
A perfectly competitive firm definitely will shut down in the short run if its price is below its average total cost
Indicate whether the statement is true or false
Even if the steel industry is an oligopoly, there may be more firms competing with the steel firms than you would think because
a. economies of scale exist b. barriers to entry can be overcome c. firms in other industries producing close substitutes may compete in the markets in which steel firms compete d. economic profit lures other firms into the industry e. there is high product differentiation
If you were to use an Aggregate Supply - Aggregate Demand diagram to model nondiscretionary and discretionary fiscal policy in reaction to a negative aggregate demand shock, you would see the aggregate demand curve move
A. to the left as a result of the shock. B. to the left, back toward its pre-shock position as a result of these policies. C. to the right as a result of the shock. D. back toward its pre-shock position as a result of these policies.
As long as the world equilibrium relative price lies within the interval set by the pre-trade national equilibrium relative prices of two trading countries, each country _____ gains from trade.
Fill in the blank(s) with correct word