Actions by the Federal Reserve to influence the level of GDP are known as

The Federal Reserve was established in 1913 to

A) prevent inflation by decreasing the money supply. B) stimulate the economy by increasing bank reserves. C) stop bank panics by acting as a lender of last resort. D) prevent bad loans by requiring banks to hold reserves.

When the average cost curve lies above the entrant's residual demand curve, an entrant:

A. lowers the incumbent's average cost curve. B. can profitably enter the market. C. cannot profitably enter the market. D. is indifferent between entering and not entering the market.