Aggregate demand decreases and real output falls but the price level remains the same. Which factor would most likely contribute to downward price inflexibility?
A. Menu costs.
B. Lower interest rates.
C. An increase in aggregate supply.
D. The real-balances effect.
Answer: A
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In response to the severe recession of 2008-2009, the Fed
a. expanded the monetary base and pushed short-term interest rates sharply higher. b. reduced the size of the monetary base and pushed short-term interest rates sharply higher. c. more than doubled the size of the monetary base and pushed short-term interest rates to near zero. d. more than doubled the size of the monetary base and pushed short-term interest rates to a historic high.
Which specific government agency monitors unemployment?
A. Commerce Department B. Bureau of Labor Statistics C. Executive Branch D. State Department
An increase in total revenue will result if
A) demand is inelastic and price decreases. B) demand is elastic and price decreases. C) demand is elastic and price increases. D) demand is unitary elastic and price increases.
A player has a dominant strategy when:
A) her chosen strategy gives her a lower payoff than the other player. B) her chosen strategy matches the best response of other players in the game. C) she has many best responses to any strategy of the other player in the game. D) she has only one best response to every possible strategy of the other player.