If both money demand and commodity demand are unstable, as many activists believe, which type of policy target(s) would most likely lead to a stable economy (assuming supply-side shocks are likely to occur)?
A) money supply target
B) real GDP target
C) interest rate target
D) nominal GDP
B
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Which of the following is NOT a wage or employment strategy that a union would follow?
A) Set a maximum wage rate such that a shortage of workers will result. B) Set a wage rate such that all workers that want to find a job can find a job. C) Set a wage rate that will maximize the income of its members. D) Set a wage rate that will maximize the income of only some of its members.
For a monopoly, the entry of new firms is difficult, but not impossible
Indicate whether the statement is true or false
What are the two characteristics that distinguish public goods from private goods?
A. Nonrivalry and nonexcludability. B. Liability rules and lawsuits. C. The Coase theorem and efficiency. D. Positive and negative externalities.
When supply is fixed, price is supply determined.
Answer the following statement true (T) or false (F)