Monetary policymakers can respond to the impact that positive inflation shocks have on output by shifting the:

A. short-run aggregate supply curve to the left.
B. monetary policy reaction curve right.
C. monetary policy reaction curve left.
D. short-run aggregate supply curve to the right.

Answer: C

Economics

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Which of the following may transform an industry from oligopoly to monopolistic competition?

A. Significant vertical integration B. Exit of firms C. A series of horizontal mergers D. Entry of new firms

Economics

Suppose that the market labor supply and labor demand equations are given by Qs = 5W and Qd = 30 - 5W. If a minimum wage is set at $4.00 (W = 4), then:

A. 15 workers will be supplied and demanded. B. 10 workers will be supplied, but 20 workers will be demanded. C. 20 workers will be supplied, but only 10 workers will be demanded. D. 20 workers will be supplied and demanded.

Economics