The IS curve shows a series of equilibrium points in the goods market for various levels of
A) investment and interest rates.
B) investment and money supply.
C) income and interest rates.
D) inflation and unemployment.
C
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Suppose that the technology used to produce computers advances. How does this change affect the supply of computers and the supply curve of computers?
What will be an ideal response?
A profit-maximizing monopolist earns an economic loss whenever
A) it pays taxes to the government on each unit of output it produces. B) the price it charges for its product exceeds average total cost. C) the demand curve lies completely below the ATC curve. D) it produces along the elastic portion of a demand curve.
If the monetary multiplier is 6, then the reserve requirement must be
A. 0.6. B. 0.167. C. 1.67. D. 0.06.
If a firm has determined its optimal output level, where MR = MC, then price
A. is unchanged. B. is set by statistical analysis of the market. C. is equal to MC. D. is determined by the market demand at that output.