Some economists believe that in the long run, the unemployment rate is independent of the inflation rate and so the Phillips curve becomes a vertical line
a. True
b. False
Indicate whether the statement is true or false
True
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In the above figure, what amount of subsidy per student would government have to provide to colleges if its desired objective was to achieve an efficient level of education, 50 million students per year?
A) $6,000 per year B) $12,000 per year C) $18,000 per year D) $27,000 per year
Discretionary fiscal policy works by shifting the aggregate demand curve
a. True b. False Indicate whether the statement is true or false
In the Keynesian model, the 45-degree line consists of the points where
a. planned consumption is equal to planned saving. b. total output is equal to aggregate expenditure. c. total consumption is equal to total expenditure. d. total saving equals total investment.
Forms of free riding behavior
a. Always leads to underproduction b. Occur in both external cost and public goods cases c. Does not occur with common property resources, unlike public goods cases d. Occurs with private goods, public goods and common property resources