To say that a price ceiling is binding is to say that the price ceiling
a. results in a surplus
b. is set above the equilibrium price.
c. causes quantity demanded to exceed quantity supplied.
d. All of the above are correct.
c
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Because decreases in inflation increase aggregate spending and short-run equilibrium output:
A. the aggregate demand curve is downward sloping. B. the aggregate demand curve is upward sloping. C. the aggregate demand curve is horizontal. D. the short-run aggregate supply line is downward sloping.
One problem with the ripple effect from the Fed's monetary policy is
A) the fact that the monetary policy transmission process is long and drawn out. B) that changing the Federal funds target rate seldom has an effect on the markets for reserves and loanable funds. C) the frequent misalignment of the spread between the Federal funds rate and the Federal funds rate target. D) that the Fed's policy sometimes has a large impact on potential GDP as well as its usual impact on aggregate demand. E) the tight relationship between that the Federal funds rate has to aggregate spending.
All of the following actions are potential rule -of-reason violations except which one?
A) a tying sale with a customer B) an exclusive dealings contract with a customer C) an agreement with a competitor firm not to bid on a contract D) a firm's agreement with a customer about the resale price of its product
In the long run, there is a tradeoff between inflation and unemployment
a. True b. False