The ultimate effect of a reduction in the money supply is:
a. a leftward shift of the aggregate demand curve
b. a rightward shift of the short-run aggregate supply curve.
c. a movement upward along the aggregate demand curve.
d. a movement downward along the aggregate demand curve.
e. a movement upward along the short-run aggregate supply curve.
a
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M2 ________
A) does not include currency B) does not include traveler's checks C) is a broader measure of money than M1 D) does not include checking deposits held at credit unions
The Whatsa Widget Company produces widgets in a perfectly competitive market. The price of a widget is $9 . Whatsa is currently producing at a rate where the marginal cost of production is $15
Is this company maximizing profit at its current level of output? Explain.
Suppose nominal GDP was $360 billion in 1990 and $450 billion in 2000. The appropriate price index (1985 = 100) was 120 in 1990 and 125 in 2000. Between 1990 and 2000 real GDP:
a) increased by $60 billion. b) decreased by $32 billion. c) increased by $100 billion. d) increased by $117 billion.
A barrier to entry is
A) a term used to explain why monopolies always make economic profits. B) a restriction on the profits that a monopoly can make. C) the situation when the government produces a good instead of relying on private firms to produce the good. D) a restriction on starting a business.