A sudden change in the normal behavior of inflation, unrelated to the nation's output gap, is called:
A. inflation inertia.
B. long-run equilibrium.
C. an inflation shock.
D. short-run equilibrium.
Answer: C
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Required reserve ratios are the minimum amount of
A) deposits any one bank must hold as a percentage of its reserves. B) reserves any one bank must hold as a percentage of its deposits. C) reserves any one bank must hold as a percentage of its total assets. D) deposits any one bank is allowed to accept as percentage of its capital. E) reserves any one bank must hold as a percentage of its loans.
A product's price elasticity of demand depends critically on the availability of substitutes
Indicate whether the statement is true or false
The maximin criterion can be defined as which of the following?
a. One seeks the maximum of the minimum payoffs to the various available strategies. b. One seeks the minimum of the maximum losses among the various available strategies. c. One seeks the maximum of the minimum losses to the various available strategies. d. One seeks the maximum of the maximum gains of the various available strategies.
Consider the Cobb-Douglas production function F(L,K) = AL?K?. Suppose that ? = 2, ? = 3, the firm has 3 units of capital and the firm's general productivity level is 20. (a) What is the firm's long-run production function? (b) What is the firm's short-run production function? (c) If the firm employs 10 workers, what are the marginal products of labor and capital? (d) If the firm employs 10 workers, what is the marginal rate of technical substitution for labor with capital? (e) Does this firm's technology exhibit increasing, decreasing or constant returns to scale?
What will be an ideal response?