At short-run equilibrium inflation ________ and output equals ________.
A. equals the value determined by part expectations and pricing decisions; the level of short-run equilibrium output consistent with that inflation rate
B. is stable; the level of output consistent with zero inflation
C. equals the value consistent with potential output; the level of output consistent with zero inflation
D. equals the value determined by past expectations and pricing decisions; potential
Answer: A
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A producer is said to have a comparative advantage in the production of a good when:
A) the producer has a higher opportunity cost than another producer. B) the producer can produce more units of the good per hour than another producer. C) the producer has a lower opportunity cost than another producer. D) the producer charges a higher price for the good than the other producers.
If the Fed carries out an open market operation and buys U.S. government securities, the federal funds rate ________ and the quantity of reserves ________
A) rises; increases B) falls; increases C) rises; decreases D) falls; decreases E) rises; does not change
The relationship between the government deficit and the change in the monetary base is
A) deficit equals change in government debt held by the public minus change in monetary base. B) deficit equals change in government debt held by the public plus change in monetary base. C) deficit equals change in government debt outstanding plus change in monetary base. D) deficit equals change in government debt outstanding minus change in monetary base.
Total fixed cost
A. varies with the level of output. B. has a downward-sloping curve. C. has an upward-sloping curve. D. is constant at all levels of output.