A supply shock is a surprise occurrence that
a. shifts the long-run aggregate supply curve to the right.
b. either increases or decreases short-run aggregate supply and output.
c. temporarily increases aggregate demand.
d. temporarily reduces aggregate demand.
B
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A monopoly sells 10 units of output at $10. If the MR of the 11th unit is $4.50, then the price of the 11th unit is
A) also $10. B) $9.50. C) greater than $10. D) $7.25.
Which of the following has also been called the command and control approach?
A. Direct controls B. Voluntary compliance C. Tradable emissions permits D. Taxes on pollution
The marginal rate of substitution represents the maximum amount of one commodity a consumer is willing to give up in exchange for one more unit of another commodity
a. True b. False Indicate whether the statement is true or false
Which of the following Fed actions would both decrease the money supply?
a. buy bonds and raise the reserve requirement b. buy bonds and lower the reserve requirement c. sell bonds and raise the reserve requirement d. sell bonds and lower the reserve requirement