Why would central bankers have to pay attention to forecasts regarding consumer sentiment and expectations of business owners and managers?
What will be an ideal response?
Central bankers realize that they can impact the level of aggregate demand through changing the real interest rate. But they also realize that aggregate demand can change due to other causes like changes in consumer and/or business optimism and policymakers need to consider how aggregate demand may be change due to these other factors so that they do not over or under correct.
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The above table has the marginal product schedule for Nick's Dry Cleaners, a perfectly competitive dry cleaning firm
a) If the price to dry clean a blouse is $8 each, complete the last column of the table. b) If Nick can hire workers at the going wage rate of $16 an hour, how many workers does Nick hire?
In summary, many of the government's farm programs are an attempt to shift the
a. demand curve for farm goods to the right b. demand curve for farm goods to the left c. supply curve for farm goods to the left d. supply curve for farm goods to the right e. supply and demand curves for farm goods to the right