If the price of inputs rises when a nation is in the intermediate range:
a. Real GDP rises and average price level rises.
b. Real GDP rises and average price level falls.
c. Real GDP falls and average price level rises.
d. Real GDP rises and real GDP remains the same.
e. Real GDP remains the same and average price level falls.
.C
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The shortsightedness effect suggests that
a. politicians have a strong incentive to support projects that yield immediate and easily recognized benefits, especially when the costs of the projects are difficult to identify and are observable only in the distant future. b. politicians have a strong incentive to support projects that yield benefits in the distant future, especially when the costs of the project must be paid for in the current period. c. voters will tend to weigh future costs and benefits more heavily than current costs and benefits. d. legislators will be unwilling to trade votes on issues, especially when those issues benefit only special interest groups.
The public policies designed to mitigate the effects of monopolies are:
A. highly debated issues. B. proven to increase benefits more than increase costs. C. highly effective. D. well-defined and accepted.
Nontariff barriers to trade are less transparent than tariffs
Indicate whether the statement is true or false
The diagnosis-related-group (DRG) system adopted by Medicare since 1983 has had the following effects, except:
A. Hospitals now receive a fixed payment for treating each patient B. The average length of a hospital stay has increased C. More patients are treated on an outpatient basis D. Hospitals now have an incentive to restrict the amount of resources used for patients