If a decrease in prices increases total revenue for a product in the short run, in the long run, it will:
a. Increase total revenue by more
b. Increase total revenue by less.
c. Decrease total revenue.
d. Either b. or c. could result in the long run.
a
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________ describes the actions a firm takes to maintain the differentiation of its product over time
A) Brand management B) Product differentiation C) Advertising D) Aggressive marketing
If the Federal Open Market Committee wants to decrease the money supply through open market operations it will
A) buy U.S. Treasury Securities. B) decrease the discount rate. C) sell U.S. Treasury Securities. D) increase the discount rate.
Reducing inflation is a more important objective than economic growth" is an example of
a) Normative economics b) Positive economics c) Objective economics d) Reality economics
The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.