The different shapes of the aggregate supply curve:
A. Determine the level of reserves held by the banking system.
B. Result in the Fed's need for total control of the money supply.
C. Determine the impact of monetary policy on price level and output.
D. Explain why the Fed must respond to market instability.
C. Determine the impact of monetary policy on price level and output.
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The invention of machinery that can double the amount of gold extracted from raw ore will likely: a. raise the world price of gold to pay for the new machinery
b. lower the world price of gold because any given amount can now be produced more cheaply. c. raise the world price of gold because miners' wages must double as their productivity doubles. d. lower the world price of gold only if new mining companies are not allowed to enter the industry.
One barrier to entry that may maintain an oligopoly is
a. government policy designed to limit foreign competition b. a low minimum efficient scale c. bounded markup pricing d. efficiency wages that make it impossible for new entrants to compete profitably e. executive payoffs