Which of the following events shifts aggregate demand rightward?
a. an increase in government expenditures or a decrease in the price level
b. a decrease in government expenditures or an increase in the price level
c. an increase in government expenditures, but not a change in the price level
d. a decrease in the price level, but not an increase in government expenditures
c
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For a perfectly competitive firm with a known marginal cost and random demand, as the expected marginal revenue decreases, the profit-maximizing quantity ________.
A) decreases B) increases exponentially C) does not change D) increases
In a Walrasian equilibrium, which of the following constrains an individual when he optimizes?
a. The market prices. b. His tastes. c. The actions of other individuals. d. Nothing-the individual has no constraints in a Walrasian equilibrium.
If fiscal policy is going to exert a stabilizing impact on the economy, it must be
a. instituted by the Federal Reserve system. b. expansionary during an economic boom but restrictive during a recession. c. timed correctly. d. passed by a three-fifths majority in Congress.
Why does the money supply increase when the Fed buys a bond but does NOT change when a business buys a bond?
What will be an ideal response?