When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand
B. increase; raise; decline
C. decline; lower; decline
D. decline; raise; decline
Answer: B
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
Mike, Joe, and Sam are roommates. They need lamps for their common living room. Lamps in their living room are a public good for these roommates
The marginal benefit that each individual receives from varying numbers of lamps in the living room is given in the table above. If the marginal cost of a lamp is 13, what is the efficient number of lamps for the roommates to purchase? A) 2 B) 5 C) 0 D) 1
A monopsony is a:
a. large number of buyers. b. large seller. c. single seller. d. single buyer.
Recall the Application about the free-agent market for professional baseball pitchers to answer the following question(s).Recall the Application. Pitchers who switch teams ________ pitchers who do not switch teams.
A. spend more time on the disabled list, on average, than B. spend less time on the disabled list, on average, than C. spend exactly the same amount of time on the disabled list as D. are less injury-prone than