A central bank raises the money supply growth rate and keeps it higher. As the economy moves from the short-run equilibrium created by the increase in the money supply growth back to long-run equilibrium what happens to the unemployment rate?
It rises.
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Nonfinancial businesses may acquire funds by borrowing from a commercial bank or by ________
A) purchasing short-term assets B) issuing securities C) issuing insurance policies D) trading on an exchange
Refer to the payoff matrix below. If Cruise R Us uses a mixed strategy, what probability for offering Specials should the firm use to equate Cruise the World's expected profits from offering a Special or not offering a special (No Special)?
Cruise R Us and Cruise the World compete in the cruise line industry. Each firm needs to determine if they are going to offer special cruise packages with special rates or not offer the specials. The above payoff matrix shows the firms' net economic profit for each set of strategies.
A) 0.33 B) 0.25 C) 0.75 D) 0.50
The President's statement that "to encourage economic growth, taxes should be cut"
A) would be an example of a normative statement. B) would be an example of a positive statement. C) would be an example of a microeconomic statement. D) would be a statement of mercantilist economic philosophy.
If labor and capital are complements in production, then an increase in the amount of capital will
a. reduce the firm's demand for labor. b. raise the firm's marginal cost of production. c. cause the scale effect to outweigh the substitution effect. d. increase labor's marginal product.