When price is above the equilibrium level, suppliers offer more than demanders wish to buy.
Answer the following statement true (T) or false (F)
True
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According to the Taylor rule, does the target for the federal funds rate respond differently for an increase in inflation caused by an increase in aggregate demand and for an increase in inflation caused by a decrease in short-run aggregate supply?
Explain whether there is or is not a difference in how the target for the federal funds rate changes.
Firm's should raise the price of their goods
a. If the demand for the product is elastic b. If it acquires a firm selling a complement good c. If it acquires a firm selling a substitute good d. Both a and c
The production possibilities curve shows different combinations of goods that:
a. can be consumed by households. b. can be consumed by firms. c. can be produced with the available technology. d. are produced and consumed by firms. e. are bought and sold in the market.
If the equation y = -10 + 2.5x was plotted:
A. the vertical intercept would be -10. B. the slope would be -7.5. C. it would graph as a downsloping line. D. the slope would be -10.