The aggregate supply curve is probably better thought of as a price/output response curve.
Answer the following statement true (T) or false (F)
True
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If the Fed buys $100 in securities from a commercial bank, the
A) Fed's assets will decrease. B) quantity of money will decrease. C) quantity of the bank's reserves will increase. D) amount of the bank's reserves will not change.
For firms that sell one product in a perfectly competitive market, the market price:
A. will remain constant regardless of an individual firm's output decision. B. is equal to the average total cost of a firm. C. is equal to the marginal cost of a firm. D. All of these are true.
Based on the CPI, how do we measure annual inflation?
a. We compute the total price of a fixed set ("market basket") of goods and services in a base year, such as 2003, and in a future year, such as 2004. b. We get CPI for 2004 by multiplying the 2004 total cost with the 2003 total cost, and divide by 100 . A similar calculation will yield the CPI value for 2003. c. We get CPI for 2004 by adding the CPI value for 2003 to the CPI value for 2004, and multiply by 100. d. We compute the total cost of a fixed set ("market basket") of goods and services in a base year, such as 2003, and in a future year, such as 2004.
What is the difference between a price ceiling and a price floor? Compared to the competitive equilibrium price, where must price ceilings and price floors be set to have an effect on the market
What will be an ideal response?