If the perfectly competitive firm withholds some of its output from the market,
A. in many cases it can drive the market price up.
B. in many cases it can drive the market price down.
C. it will have no effect on market price whatsoever.
D. it is impossible to generalize what the long-run effect will be.
C. it will have no effect on market price whatsoever.
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
Which of the following will NOT work to increase the rate of economic growth?
A) increase saving B) limit competition from international trade C) improve the quality of education D) All of the above will work to increase the rate of economic growth.
In a small open economy,
Sd = $5 billion + ($100 billion) rw, Id = $10 billion - ($50 billion) rw, Y = $50 billion, G = $3 billion, rw = .06. (a) Calculate the current account balance. (b) Calculate net exports. (c) Calculate desired consumption. (d) Calculate absorption.
Suppose all banks are subject to a uniform reserve requirement of 20 percent and that the Gamblers Last Chance Bank of Las Vegas has zero excess reserves. If a new customer deposits $10,000, the bank can now extend new loans up to a maximum of: a. $2,000
b. $8,000. c. $10,000. d. $50,000.