Our business cycle experiences suggest that a macroeconomic policy designed to lower the average rate of inflation will require ________ in actual real GDP and an accompanying ________ in the unemployment rate
A) an increase, increase
B) an increase, decrease
C) a reduction, increase
D) a reduction, decrease
C
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If you have found the percentage of the value of total revenue accounted for by the four largest firms in an industry, you have found the
A) elasticity of demand value. B) elasticity of supply value. C) Herfindahl-Hirschman Index. D) four-firm concentration ratio. E) monopolistic concentration index.
According to the new classical model, the output cost of reducing inflation
a. is the costs of the revenue lost by printing less money. b. is the lost income from the large recession that will occur as aggregate demand falls. c. may be small if the policy to reduce inflation is seen as credible by the public. d. will be zero if it is unanticipated.
Since a firm is willing to sell its product at the marginal cost and since the firm receives the market price, the difference between the two is:
a. consumer surplus. b. economic profit. c. marginal revenue. d. producer surplus. e. a shortage.
If new regulations make it illegal to sell older model electrical appliances, then
a. producers of new models that meet the regulations will see demand for their output rise. b. consumers who might have purchased to older appliances are clearly made better off. c. consumers are helped, but the profits of appliance producers are not affected. d. consumers will certainly gain from the change.