If the money demand curve shifts down,
A) planned investment will decrease and aggregate output will decrease.
B) planned investment will decrease and aggregate output will increase.
C) planned investment will increase and aggregate output will decrease.
D) planned investment will increase and aggregate output will increase.
Answer: D) planned investment will increase and aggregate output will increase.
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If workers and firms have rational expectations, they understand that ________ monetary policy will raise the inflation rate, so actual inflation ________ expected inflation
A) contractionary; will be equal to B) contractionary; will be less than C) expansionary; will be greater than D) expansionary; will be equal to E) expansionary; will be less than
If the price of mozzarella cheese (an ingredient in pizzas) declines due to a major technological breakthrough in the dairy industry, there would be:
A) a decrease in the supply of pizza. B) an increase in the supply of pizza. C) an increase in the quantity of pizza supplied. D) no change in the supply of pizza.
What do we know about service failures?
a. Statistics show that out-of-stock occurrences have reduced retailer's overall sales by four percent b. Costs of stockouts are not shared equally among members of the supply chain c. Calculating the true cost of a stockout is very difficult d. All of the above
In the short run, the perfectly competitive firm will always earn an economic profit when
A. P > ATC. B. P = MC. C. P = ATC. D. P > AVC.