The Federal Reserve banks could probably have prevented many of the bank failures in the early 1930s by:
a. raising the reserve requirement of the commercial banks
b. lending money to the commercial banks.
c. improving the system whereby checks are cleared.
d. helping to create a commission of experts to engage in a prolonged study of the problem.
e. selling large amounts of government bonds.
b
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In which oligopoly model(s) do firms earn zero profit?
A) Cournot B) Bertrand C) Stackelberg D) Oligopoly firms always earn positive economic profits.
Which of the following about potential GDP is true?
a. During a recession, actual GDP will exceed potential GDP. b. Actual GDP cannot exceed potential GDP, even for short periods. c. Actual output may be either above or below potential output depending on how fully resources are utilized. d. The economy's potential output is the maximum output that could be achieved temporarily during a time of economic boom.