If you remove resources from factory production, the quantity of factory goods will:
A. increase.
B. decrease.
C. remain the same but their price will decrease.
D. be diverted to other production.
Answer: B
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Who determines the size of the money supply in the U.S.?
A. the Federal Reserve B. the Federal Reserve and the banking system together C. the Federal Reserve and the Treasury Department together D. the Treasury Department
________ refer to the ordinary fluctuations of real GDP around its long-run trend
Fill in the blank(s) with correct word
Pick the true statement
A) It is possible for economic profit to be greater than accounting profit. B) Accounting profit includes both the implicit and explicit costs of production. C) Accounting profit is always greater than economic profit. D) None of the above is a true statement.
Most economists see the business cycle
A) as a regular pattern of recessions and expansions of the same length and intensity. B) occurring as a result of anticipated macroeconomic changes in the marketplace. C) as randomly occurring, resulting from unpredictable long-run changes in the macroeconomy. D) as resulting from the response of households and firms to macroeconomic shocks.