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
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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.
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)
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.
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.