If the economy moves into recession, monetarists argue that the Fed should
A. Keep the money supply growing at a constant rate
B. Keep the money supply fixed
C. Increased the federal funds rate
A. Keep the money supply growing at a constant rate
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Equilibrium price and quantity are determined by:
A. both supply and demand. B. demand. C. supply. D. government regulations.
If production is characterized by variable technology, the optimal level of air quality occurs where
a. the marginal private cost of air quality equals the marginal social benefit b. the marginal social cost of air quality equals the marginal social benefit c. the marginal social cost of air quality equals the marginal private cost of air quality d. government regulators set it e. all costs are absorbed by the polluter
According to the graph shown, if this economy were to open to trade, consumers would:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. enjoy a net gain to surplus of DEFG.
B. suffer a net loss to surplus of DEFG.
C. suffer a transfer of surplus to the producer of DEFG.
D. experience deadweight loss of FG.
One country has a comparative advantage over another country in the production of a good if it
A) has a curved production possibilities curve and the other country has a linear production possibilities curve. B) has a linear production possibilities curve and the other country has a curved production possibilities curve. C) is a lower opportunity cost producer of the good. D) has lower fixed costs than the other country.