Comparing M1 and M2 we know that
A) M1 is larger because it contains currency.
B) M2 is approximately equal to M1.
C) M2 is larger because it contains M1 and other assets.
D) M2 is larger because it contains more liquid assets than does M1.
C
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Refer to Figure 1-2. Calculate the area of the triangle A
A) $1.3 million B) $2.6 million C) $3.4 million D) $5.2 million
A firm that wants to maximize profits should hire each input to the point where
A) its marginal revenue product divided by the price of the input equals one. B) its marginal revenue product divided by its marginal physical product equals the wage. C) its marginal revenue product divided by the product price equals one. D) its marginal physical product divided by the price of the input equals the product price.
If the money supply in the economy were at MS2, and the Federal Reserve Bank used open market operations to move money supply to MS1 the overall result in the economy would be:
A. Aggregate demand shifted in, causing GDP to fall.
B. Aggregate supply shifted in, causing GDP to fall.
C. Aggregate demand shifted out, causing GDP to rise
D. LRAS move to the FE level of output.
A key determinant of the price elasticity of supply is the
a. number of close substitutes for the good in question. b. extent to which buyers alter their quantities demanded in response to changes in prices. c. length of the time period. d. extent to which buyers alter their quantities demanded in response to changes in their incomes.