According to the misperceptions theory, short-lived shocks may have long-term effects on the economy because of

A. accelerator effects.
B. propagation mechanisms.
C. multiplier effects.
D. automatic stabilizers.


Answer: B

Economics

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A decrease in consumer confidence would shift the:

A) aggregate demand curve rightward. B) aggregate demand curve leftward. C) aggregate supply curve rightward. D) aggregate supply curve leftward.

Economics

If a firm has reached the minimum efficient scale, any additional output produced by the firm will result in a lower average cost in the long run.

Answer the following statement true (T) or false (F)

Economics

Refer to the data. A budget surplus occurred in year:



Answer the question using the following budget information for a hypothetical economy. Assume that all budget surpluses are used to pay down the public debt.
A.  2.
B.  3.
C.  4.
D.  6.

Economics

Shareholder voting rights should:

A. not be assigned to a founder who values control. B. be assigned to those with residual-claim rights. C. not be granted to management because of the agency problem. D. be assigned only to small shareholders.

Economics