Typically, central banks increase the supply of money by ________
A) buying bonds from banks
B) printing currency
C) directing the government to issue more money to banks
D) all of the above
E) none of the above
A
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A firm can always increase its output by one unit at a marginal cost of $10 . Its marginal cost curve is
a. a horizontal line. b. a vertical line. c. a ray with slope equal to 10. d. exactly one-tenth as steep as its total cost curve.
Which is not a factor of production?
a. Capital b. Money c. Land d. Labor
Exhibit 17-3 Aggregate demand and aggregate supply curves
As shown in Exhibit 17-3, if people behave according to adaptive expectations theory, an increase in the aggregate demand curve from AD1 to AD2 will cause the price level to move:
A. from 100 to 110 initially and then eventually move back to 100. B. directly from 100 to 110 and then remain at 110. C. directly from 100 to 120 and then remain at 120. D. from 100 to 110 initially and then eventually move to 120.
All of the following statements regarding the marginal revenue product (MRP) curve and the demand for labor are true EXCEPT
A) an individual firm's demand for labor is its MRP curve. B) under conditions of perfect competition, MRP equals marginal physical product multiplied by the product's price. C) an increase in the market demand for a given product decreases the product's price. D) the demand for labor is a derived demand.