Data indicate that the economy's response to monetary policy became noticeably weaker and more stretched out during
A) 1961-75.
B) 1976-90.
C) 1991-2007.
D) None of the above. The response has grown stronger and shorter.
C
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The above table shows the total product schedule for Hair Today, a hair styling salon. The average product when four workers are hired is
A) 10 hair stylings. B) 15 hair stylings. C) 20 hair stylings. D) 240 hair stylings. E) the same as when five workers are hired.
The value of the absolute price elasticity of demand for good X is 4. The absolute price elasticity for good Y is 1. Which good's quantity demanded is more responsive to a change in price?
A) Good X B) Good Y C) They are equally responsive. D) Not enough information is given.
Which of the following could generate economic profits for perfectly competitive firms in the short run, if they initially earn zero economic profits?
A) a fall in demand B) a unit tax on output C) an increase in total fixed costs D) a decrease in input prices
According to the rational expectations school, people base their expectations about inflation on: a. the announcement of a change in policy
b. weighted averages of previous inflation rates, with the most distant getting the heaviest weight. c. all information available to them. d. changes in monetary policy only. e. changes in both monetary and fiscal policy.