If the unit price of a product is P, then the amount of spending that the buyers would need to pay for a given quantity Q is equal to:
A. P x Q
B. P + Q
C. P - Q
D. Q - P
A. P x Q
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If the economy is in an equilibrium with real GDP less than potential GDP, a fiscal stimulus could move the economy toward potential GDP by simultaneously ________ taxes and ________ government expenditures on goods and services
A) raising; increasing B) raising; decreasing C) cutting; increasing D) cutting; decreasing E) raising; not changing
Explain how a large number of firms in the industry and product heterogeneity affect the likelihood of cartel success.
What will be an ideal response?
For a single country to influence the price of some good in the global market:
A. it must be considered a price taker. B. the country must be large relative to other nations in the world C. the quantity it produces and consumes must be small relative to the total amount of that good bought and sold worldwide. D. the quantity it produces and consumes must be large relative to the total amount of that good bought and sold worldwide.
The standard discussion of monetary policy is based on the assumption that:
A. short-term rates will fall when the Fed pushes up long-term interest rates. B. short-term rates will rise when the Fed pushes up long-term interest rates. C. long-term rates will fall when the Fed pushes up short-term interest rates. D. long-term rates will rise when the Fed pushes up short-term interest rates.