A ________ between price and quantity sold because ________
A) monopoly faces a tradeoff; to sell a larger quantity, it must lower its price
B) monopoly does not face a tradeoff; it controls market entry and can sell at any price and any quantity
C) natural monopoly faces a tradeoff; it can always price discriminate
D) natural monopoly does not face a tradeoff; it is a price maker
E) perfectly competitive firm faces a tradeoff; it is a price taker
A
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Given upward-sloping supply curve, all other things remaining constant, a decrease in demand will lead to a(n) _____
A) increase in supply. B) decrease in supply. C) increase in quantity supplied. D) increase in the equilibrium price. E) decrease in the equilibrium price.
If nominal GDP is $14 trillion and real GDP is $12 trillion, the GDP deflator is:
A. 117. B. 114. C. 112. D. 86.
If a country wants to keep the value of its currency fixed, then its central bank should
A) sell domestic goods when there is an increase in the supply of its domestic currency. B) buy domestic goods when there is an increase in the supply of its domestic currency. C) sell its domestic currency when there is an increase in the supply of that currency. D) buy its domestic currency when there is an increase in the supply of that currency.
If the private sector wishes to hold a constant quantity of real government bonds, inflation requires that the private sector continuously ________ those bonds, so that the government ends up having to pay out interest on net equal to the ________
interest rate times the bonds outstanding. A) sell, nominal B) sell, real C) buy, nominal D) buy, real