The short-run aggregate supply curve is _____ when the economy has substantial excess capacity.
a. steep
b. flat
c. downward slanting
d. upward slanting
b. flat
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What is the difference between a public franchise and a public enterprise?
A) Both refer to a service provided directly to consumers through the government, but "public franchise" is a term more commonly used in the United States while "public enterprise" is more commonly used in European countries. B) A public franchise grants a firm the right to be the sole legal provider of a good or service. A public enterprise refers to a service that is provided directly to consumers through the government. C) A public enterprise is owned by the public through its holdings of shares of stock in the enterprise. A public franchise is a firm owned by the government. D) A public enterprise grants a firm the right to be the sole legal provider of a good or service. A public franchise refers to a service that is provided directly to consumers through the government.
A contractionary monetary policy can reduce the inflation rate without causing a rise in unemployment if expectations are formed rationally and monetary policy is
A) combined with expansionary fiscal policy. B) carried out in total secrecy. C) publicly announced and credible. D) combined with contractionary fiscal policy.
Which of these types of costs can be ignored when an individual or a firm is making decisions?
a. sunk costs b. marginal costs c. variable costs d. opportunity costs
A curve showing the relationship between tax rates and tax revenues is called a __________ curve
A) Phillips B) Keynesian C) Gaussian D) Laffer