Contractionary monetary policy, achieved by selling bonds in the open market, tends to discourage investment.
a. true
b. false
Ans: a. true
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The above figure shows the market demand curve for mobile telecommunications (time spent on a mobile phone). If the price were zero, consumer surplus equals
A) $301.00. B) $924.50. C) $1,225.50. D) $1,250.00.
Which of the following can be used to help explain wage differences among different groups of workers?
a. human capital acquired through education b. human capital acquired through job experience c. compensating differentials d. All of the above can explain wage differences.
Friedman and Phelps argued that
a. if peoples' inflation expectations were fixed, then an increase in the money supply growth rate could not change output in the short or long run. b. if peoples' inflation expectations were fixed, then a decrease in the money supply growth rate could raise output and unemployment in the short run. c. any change in unemployment created by making aggregate demand increase more rapidly is temporary because people eventually revise their inflation expectations. d. None of the above is correct.
A monopolist will never produce at a quantity where the:
A. MR < 0. B. MR > 0. C. P > MR. D. MR= MC.