Some have argued that the Federal Reserve looked at the wrong indicator of monetary policy, and that the Fed mistakenly thought that monetary policy was "easy" because ______
a. the stock of money had grown rapidly
b. the monetary base had grown rapidly
c. market interest rates were low
d. bank reserve ratios were low
c. market interest rates were low
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In the long run, a monopolistically competitive industry is characterized by all of the following, except
A. firms earning zero economic profits. B. production that would exhibit lower costs per unit at higher output levels. C. an efficient use of resources. D. firms producing where price is above marginal cost.
Refer to the information provided in Figure 2.1 below for the economy of Macroland to answer the question(s) that follow.
Figure 2.1Refer to Figure 2.1. If Macroland's economy is at Point A, it could produce more capital goods
A. only with additional resources. B. without sacrificing any consumer goods. C. only by sacrificing some consumer goods. D. only with technological improvements.
In the figure above, the efficient amount of output is
A) 20 units per day. B) 40 units per day. C) 60 units per day. D) 80 units per day.
Refer to Figure 12-12. Consider a typical firm in a perfectly competitive industry that makes short-run profits. Which of the diagrams in the figure shows the effect on the industry as it transitions to a long-run equilibrium?
A) Panel A B) Panel B C) Panel C D) Panel D