A social loss function is a way to
a. represent the objectives of policymakers.
b. balance the benefits lower inflation with the costs of higher unemployment and lower output.
c. calculate the costs of budget deficits.
d. a way to compensate the losers that result from changes in government policy.
e. both a and b.
C
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The long run demand curve for wheat is likely to be: a. more elastic than the short run demand curve for wheat. b. more inelastic the short run demand curve for wheat. c. the same as the short run demand curve for wheat
d. more inelastic than the short run supply of wheat.
The marginal productivity theory is irrelevant to organizing production in a socialist society
a. True b. False Indicate whether the statement is true or false
Which of the following would most likely cause a nation's currency to appreciate?
a. an increase in inflation of the nation's trading partners b. an increase in the nation's domestic inflation rate c. a decrease in domestic real interest rates d. an increase in real interest rates abroad
The empirical specification TVC = aQ + bQ2 + cQ3 can be used to estimate
A. a ?-shaped TVC curve. B. short-run cubic cost function. C. a short-run cubic production function. D. both b and c E. none of the above