Some economists believe that inflation could actually help reduce unemployment in the short-run
a. True
b. False
Indicate whether the statement is true or false
True
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The Federal Reserve can increase the money supply by:
A. reducing reserve requirements. B. increasing the discount rate. C. conducting open market sales. D. eliminating deposit insurance.
Refer to Figure 13-3. Which of the points in the above graph are possible long-run equilibria?
A) B and D B) A and D C) A and C D) A and B
According to the classical view,
a. velocity is constant, which means changes in price will cause changes in price or quantity. b. quantity is constant, which means changes in the money supply could cause either changes in velocity or changes in prices. c. velocity and price are constant so that changes in the money supply causes changes in quantity. d. velocity and quantity are constant so that changes in the money supply cause changes in prices. e. velocity is constant while quantity is variable so that changes in the money supply change both price and quantity.
The SSS Co has a patent on a particular medication. The medication sells for $1 per daily dose and marginal cost is estimated to be a constant at $0.20. Assuming linear demand and marginal cost curves, use this information to estimate the deadweight loss from monopoly pricing if the firm currently sells 1,000 doses per day. Can this loss be justified?
What will be an ideal response?