In the Keynesian model, short-run equilibrium occurs
A) where the IS and LM curves intersect.
B) where the IS curve, LM curve, and FE lines intersect.
C) where the IS curve intersects the FE line.
D) where the LM curve intersects the FE line.
A
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The competition faced by firms in an oligopoly with differentiated products is higher than that faced by firm(s) in ________
A) a duopoly with homogeneous products B) perfect competition C) monopolistic competition D) monopoly
Which of the following are arguments against taxing unrealized capital gains?
a. A person might have to sell an asset in order to pay the tax on it. b. It might be difficult to determine the increase in valuation. c. It increases the incentive to hold onto appreciated assets. d. a and b e. b and c
Unemployment insurance provided by the U.S. government is usually funded by:
a. the excise duties imposed on the import of foreign goods. b. the national tax on payrolls levied on firms. c. external borrowing by the U.S. government. d. printing new money. e. selling off government bonds.
Picture in your mind's eye the graph of a profit-maximizing monopolist. If its cost curves—both ATC and MC—shift upward while its demand curve remains unchanged, the monopolist will
a. decrease price and increase output b. decrease both price and output c. increase price and decrease output d. increase both price and output e. keep both price and output at the same level