Stabilization policies are government policies used to affect ________, with the objective of eliminating output gaps.
A. diminishing returns to capital.
B. labor productivity.
C. planned aggregate expenditure
D. potential output.
Answer: C
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A cartel usually has a collusive agreement to
A) restrict output. B) boost output. C) lower the price. D) increase the number of firms in the industry.
Tony's Italian Ice is a monopolistically competitive firm. If Tony's earns a profit in the short run, which of the following is most likely to occur?
A) New firms that sell Italian ice will enter the market and Tony's demand curve will shift to the right. B) New firms that sell Italian ice will enter the market and Tony's demand curve will become more inelastic. C) New firms that sell Italian ice will enter the market and Tony's cost curves will shift to the left. D) New firms that sell Italian ice will enter the market and Tony's demand curve will shift to the left.
The members of Federal Reserve district bank boards of directors appointed by the Board of Governors are known as
A) Class A directors. B) Class B directors. C) Class C directors. D) Class D directors.
Suppose you received a 5 percent increase in your nominal wage. Over the year, inflation ran about 2 percent. Which of the following is true?
a. Your real wage fell. b. Your nominal wage fell. c. Both your nominal and real wages decreased. d. Although your nominal wage fell, your real wage increased. e. Both your nominal and real wages increased.