Using Figure 8.7, a shift in aggregate demand from AD4 to AD5 is most likely to cause
A. An increase in real output but no change in the price level.
B. An increase in price level but no change in real output.
C. A decrease in price level but no change in real output.
D. An increase in real output and an increase in the price level.
Answer: B
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Suppose a monopolist cannot price discriminate. To maximize profit, it will
a. always produce in the inelastic range of its demand curve b. never produce in the elastic range of its demand curve c. never produce in the inelastic range of its demand curve d. never produce in the elastic range of its marginal cost curve e. produce in the elastic range of the marginal revenue curve
A commercial bank has $1,000,000 of outstanding demand deposits and actual reserves of $300,000 . If the required reserve ratio is 20 percent, what is the maximum amount of new loans the bank can extend?
a. zero b. $100,000 c. $300,000 d. $700,000
If the velocity of money and real GDP are fixed, then the quantity theory of money implies that the price level will:
What will be an ideal response?
What economic concept is exemplified by an employer offering tuition reimbursement to employees who are continuing their education?
a. marginal benefit b. marginal cost c. positive incentive d. negative incentive