If current unemployment is close to the natural rate of unemployment, the level of real GDP is likely to be close to the level of potential output
Indicate whether the statement is true or false
TRUE
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The level of equilibrium expenditure at each price level determines
A) full employment. B) the points on the AE curve. C) the points on the AD curve. D) aggregate planned production. E) the price level.
Refer to Figure 9.2. Whenever a CD is sold, 5% of the revenue goes to the artist and the remainder of the revenue goes to the record company. The graph above depicts R, the total revenue from sales; (0.95)R, the record company's share; and C, the cost of producing the CD (which the record companies bears). At what quantity would the record company like to produce the CD?
A. 0
B. Q1
C. Q2
D. Q3
If an increase in production costs (say, an increase in the wage rate) results in an upward shift in the MC curve, but the MC curve still passes through the MR gap created by the kinked demand curve, then the oligopolist will respond to that increase in production costs by
a. keeping price and output the same b. raising price and decreasing output c. lowering price and increasing output d. raising price and raising output e. lowering price and lowering output
Which of the following statements is most correct?
A. The ECB and FOMC are equally successful at keeping the target rate in range. B. The ECB is more successful at keeping the market rate closer to the target rate than the FOMC until the Fed began paying interest on reserves . C. The FOMC is more successful at keeping the market rate closer to the target rate than the ECB until the Fed began paying interest on reserves. D. The ECB seldom has the market rate close to the target rate.