Workers expect inflation to fall from 4% to 1% next year. As a result, this should
A) move the economy up along a stationary short-run aggregate supply curve.
B) shift the short-run aggregate supply curve to the right.
C) shift the short-run aggregate supply curve to the left.
D) move the economy down along a stationary short-run aggregate supply curve.
B
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The government forcing a monopoly telecommunications company to allow other firms to use its cables is an attempt to
A) regulate prices. B) decrease the monopoly market power by eliminating a natural monopoly. C) decrease the monopoly market power by increasing competition. D) None of the above.
If a perfect competitor faces P = ATC in the long run, the firm will
A) earn economic profits. B) earn economic losses. C) leave the industry. D) remain in the industry.
According to the rational choice model, cash grants are preferred to food stamps because
A. food is the most essential commodity. B. they enhance consumer choice. C. cash grants allow consumers to reach lower indifference curves. D. food would be cheaper to buy with cash.
A bank has $6 million in assets and $4 million in liabilities. The remaining $2 million is the bank’s ______.
a. cash assets b. reserves held at the Fed c. loans d. capital