In the classical model, a temporary increase in government purchases causes the new equilibrium to have
A) more employment and a lower real wage than before.
B) more employment and a higher real wage than before.
C) less employment and a lower real wage than before.
D) less employment and a higher real wage than before.
A
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The expansionary monetary and fiscal policies of the 1960s resulted in
A) low inflation rates and low rates of unemployment. B) high inflation rates and high rates of unemployment. C) high inflation rates and low rates of unemployment. D) low inflation rates and high rates of unemployment.
The United States is the largest national economy in the world
a. True b. False Indicate whether the statement is true or false
Suppose the own price elasticity of demand for good X is ?0.5, and the price of good X increases by 10 percent. What would you expect to happen to the total expenditures on good X?
A. Increase B. Remain unchanged C. Decrease D. Neither increase, decrease, nor remain unchanged
For an incumbent, investing in plant and equipment that reduces marginal cost while raising total cost makes sense if
A) the incumbent's profit fro, producing the entry-deterring level of output after making the investment exceeds the profit the firm would earn if it didn't make the investment and entry occurred B) the incumbent's profit from producing the entry-deterring level of output after making the investment is positive C) the potential entrant cannot enter the market profitably after the incumbent makes the investment and produces the entry-deterring level of output D) the potential entrant would not enter the market anyway