Contractionary fiscal policy ... aggregate demand and in the short run ... real GDP
What will be an ideal response?
decreases; decreases
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If the Fed's monetary policy reaction function does not change, then when inflation increases the Fed responds by ________ the real interest rate, which ________ consumption and investment spending, which ________ output.
A. increasing; increases; decreases B. decreasing; decreases; decreases C. increasing; decreases; decreases D. increasing; increases; increases
Game theory is a model for describing oligopoly price decisions among firms that are:
a. interdependent. b. independent. c. regulated d. merging
An increase in supply could be caused by a(n)
a. increase in price b. government-imposed price ceiling c. decrease in resource prices d. decrease in consumer incomes e. unfavorable shift in tastes and preferences
Suppose the accompanying table describes the demand for a good produced by monopolist.PriceQuantity$101$92$83$74$65$56$47The monopolist's marginal revenue from selling the 4th unit of output is less than $7 because:
A. marginal cost is greater than $3. B. demand is perfectly elastic. C. the consumer only pays $4 for the 4th unit. D. it has to charge $1 less for each of the first 3 units of output.