Supply shocks after 1985
A) forced the Fed to follow restrictive monetary policy and caused a negative output ratio.
B) forced the Fed to follow restrictive monetary policy and caused a positive output ratio.
C) allowed the Fed to follow accommodative monetary policy and caused a negative output ratio.
D) allowed the Fed to follow accommodative monetary policy and push the output ratio toward zero.
D
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Suppose the supply of textbooks is upward sloping and shifts leftward due to higher ink and paper costs. Which of the following events would leave the equilibrium price of textbooks at the same level observed before the supply shift?
A) Demand is perfectly elastic (horizontal). B) Demand is downward sloping and shifts leftward. C) all of the above D) none of the above
Refer to the given data. At the profit-maximizing level of employment, this firm's total revenue will be:
A. $16.
B. $32.
C. $24.
D. $30.