In the Keynesian model in the long run, a decrease in the money supply will cause
A) a decrease in output and an increase in the real interest rate.
B) an increase in the real interest rate but no change in output.
C) a decrease in the real interest rate and a decrease in output.
D) no change in either the real interest rate or output.
D
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Compared to a similar perfectly competitive industry, a single-price monopoly
A) creates a deadweight loss and decreases economic profit. B) produces more output. C) creates a deadweight loss and decreases consumer surplus. D) is more efficient because there is no wasteful competition. E) sets a lower price because there is less competition.
Suppose we have normally-sloped IS and LM curves intersecting at point A. Then a monetary policy change shifts the LM curve to the right. Directly below point A we find a point on the new LM curve that shows us
A) where the new IS-LM equilibrium occurs. B) how much the interest rate must fall to raise planned expenditures to the new equilibrium income. C) how much the interest rate must fall to by itself raise the demand for money by as much as the money supply has decreased. D) how much income must rise to by itself raise the demand for money by as much as the money supply has increased. E) how much the interest rate must fall to by itself lower the demand for money by as much as the money supply has decreased.
Most economic activity in the United States is carried out by monopolies.
Answer the following statement true (T) or false (F)
Which of the following is true?
a. Women are more highly unionized than men. b. A higher percent of white workers belong to unions than do African-American workers. c. The proportion of government employees belonging to a union is substantially higher than the proportion of private-sector workers who are union members. d. There is little difference in incidence of unionization among occupational categories.