Answer the following questions true (T) or false (F)
1. An increase in the price of inputs will cause the supply curve for a product to shift to the right.
2. All else equal, as the price of a product falls, the quantity supplied increases.
3. A decrease in the number of firms in a market will cause supply to increase.
1. FALSE
2. FALSE
3. FALSE
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The relationship between consumer spending and income is known as the
A) rate of individual wealth. B) consumption function. C) rate of income. D) inflation rate.
Economists who favor activist monetary policy often argue that
A) during the mid-1970s, money supply growth rates were nearly constant and still the economy went through a recession. B) during the mid-1970s, activist monetary policy was applied and the economy was healthy and stable. C) activist monetary policy is inflexible and this is one of its virtues; the money supply doesn't change every year in response to political considerations. D) activist monetary policy is likely to be destabilizing most of the time, but still it is the better way to proceed.