Some economists conduct empirical research on the theory of the firm by measuring the degree of technical efficiency achieved by actual firms. What type of research contributions are provided by these studies?
A) Normative
B) Positive
C) Administrative
D) Executive
B
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The aggregate demand curve is Y = 15 - 0.2? when the inflation rate falls from 6 percent to 5 percent. Then, output increases from 13.8 to 17. The response of monetary policy to the inflation decline has been ________
A) autonomous tightening B) automatic adjustment C) autonomous easing D) to increase autonomous spending E) none of the above
As the dollar appreciates, which of the following is most likely to occur?
a. More Americans will travel abroad. b. American imports will fall. c. More foreigners will visit the United States. d. American firms will reduce their investments abroad.
What effect would we expect in the market for loanable funds if people increase their saving?
A. Supply will shift right and demand will not change. B. Demand will shift left and supply will not change. C. Supply will shift left and demand will not change. D. Demand will shift right and supply will not change.
In 2005–2006, the Fed increased interest rates in an attempt to halt inflation. What was the most likely effect of raising interest rates on velocity?
A. Velocity will decrease. B. Velocity will increase. C. Velocity will remain constant. D. Velocity is unrelated to saving accounts.