According to the political business cycle, after an election, unless the central bank acts inflation is likely to
a. have risen. To counter this the central bank would raise interest rates.
b. have risen. To counter this the central bank would lower interest rates.
c. have fallen. To counter this the central bank would raise interest rates.
d. have fallen. To counter this the central bank would lower interest rates.
a
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Suppose the current price of barley is $7 per bushel and at that price 100,000 bushels are grown by a Colorado farmer
If the price of barley rises to $8 and quantity supplied increases to 130,000 bushels, then using the midpoint method, the price elasticity of supply for barley equals A) 13.33. B) 26.78. C) 1.96. D) 0.51. E) zero.
Dustin's copy shop can use four alternative plants. The figure above shows the average total cost curves for Plant 1 (ATC1), Plant 2 (ATC2), Plant 3 (ATC3), and Plant 4 (ATC4). Dustin's minimum efficient scale is
A) 2,650 copies per day. B) 6,000 copies per day. C) 4,000 copies per day. D) More information is needed to determine the minimum efficient scale.