To fight unemployment and close a recessionary gap, the Fed ______
A. stimulates aggregate demand by lowering the federal funds rate, which increases the quantity of money
B. stimulates aggregate supply by lowering the federal funds rate, which increases potential GDP
C. increase employment, which increases real GDP
D. increases bank reserves, which banks use to make new loans to busi-nesses, which increases aggregate supply
A By lowering the federal funds rate, the Fed ultimately increases aggregate demand, which increases real GDP and lowers unemployment.
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For a monopolist, as output expands, price and marginal revenue become more divergent (i.e., are farther apart)
a. True b. False
The antitrust laws are sometimes used by companies to reduce competition in their markets rather than enhance it.
Answer the following statement true (T) or false (F)