According to the text, the Fed and other policy makers are concerned about:
A. inflation rates that are too high only.
B. inflation rates that are either too high or too low compared to its set target.
C. inflations rates that are too low only.
D. annual inflations rates that exceed 10%.
Answer: B
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If the marginal social benefit of a city's sewage system is less than the marginal social cost, then the city will achieve an efficient use of resources if it ________
A) decreases the capacity of the sewage system B) does not change the capacity of the sewage system C) increases the capacity of the sewage system D) increases the sewerage charge that the residents pay
Suppose an industry has 100 firms, each with supply curve P = 50 + 10Q. Furthermore, suppose the market demand curve is given by P = 200 - 0.9Q. What is the industry supply curve?
A. P = 50 + 0.1Q B. P = -500 + 10P C. P = 50 + 10 Q D. P = 500 + Q
Which of the following institutions may result in hold-up?
A. Long-term contracts B. Vertical integration C. Spot markets D. Piece rates
During the recession phase of the business cycle, production, employment, and income ___________
Fill in the blank(s) with the appropriate word(s).