The economy is in long-run equilibrium only when the short run aggregate supply curve intersects the aggregate demand curve along the long run aggregate supply curve
a. True
b. False
Indicate whether the statement is true or false
True
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In the Keynesian model in the long run, an increase in taxes causes the price level to ________ and the real interest rate to ________
A) fall; rise B) fall; fall C) rise; rise D) rise; fall
Suppose that the demand for oranges increases. Carefully explain how the rationing function of price will restore market equilibrium
What will be an ideal response?
Which of the following is true about government activity in the United States?
a. Macroeconomic policy is handled mainly at the state level. b. Higher education is handled mainly at the national level. c. Primary and secondary education is handled mainly at the local level. d. Primary and secondary education is handled mainly at the national level. e. Police and fire protection are handled mainly at the state level.
Peter studies at the coffee shop around the corner, at the same time that John talks loudly on his cell phone. The costs and benefits of each cell phone call made by John are given by the following table: 
According to the Coase theorem, when the parties affected by externalities can negotiate costlessly with one another
A. an efficient outcome results no matter how the law assigns responsibility. B. efficiency cannot be reached without government intervention. C. the correct way to deal with an externality is to tax it. D. an efficient outcome results if the liability is placed on the party with the lowest cost of prevention.