Which of the following is correct? When the expected amount supplied exceeds the expected amount demanded, then:
a. Inventories rise, unemployment tends to rise, and prices tend to fall.
b. Inventories rise, unemployment tends to fall, and prices tend to rise.
c. Inventories fall, unemployment tends to rise, and prices tend to rise.
d. It is impossible for these two to be unequal.
e. You are mixing apples and oranges. These two macroeconomic variables should not be compared.
.A
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Explain two ways by which the Federal Reserve System can increase the monetary base. Why is the effect of Federal Reserve actions on bank reserves less exact than the effect on the monetary base?
What will be an ideal response?
Economic profit is always
A) greater than accounting profit. B) equal to accounting profit. C) less than accounting profit. D) equally likely to be either greater or less than accounting profit.