New Keynesian economists generally argue that
A) there is an exploitable tradeoff between unemployment and inflation.
B) changes in aggregate demand will have relatively greater effects on real GDP when firms change prices less frequently.
C) activist policy can be used to reduce the fluctuations in real GDP.
D) all of the above
D
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The world price of a good refers to the quantity of one good exchanged for a unit of another good.
Answer the following statement(s) true (T) or false (F)
The Constitution of the United States says nothing about state economic activity.
A. True B. False C. Uncertain
A major difference between a monopolist and a perfectly competitive firm is that
A) the monopolist is certain to earn economic profits. B) the monopolist's marginal revenue curve lies below its demand curve. C) the monopolist engages in marginal cost pricing. D) the monopolist charges the highest possible price that he can.
When a shortage exists in a market
A) the market clearing price is above equilibrium and market forces will cause the price to fall. B) the quantity demanded is less than the quantity supplied at the existing price. C) the current price is below the market clearing price and the price will rise. D) the quantity supplied is greater than the quantity demanded at the current price.