Refer to the above figure. Which point or points represent(s) a long-run equilibrium?
A) A only B) B only C) C only D) both A and B
A
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The two most common types of money in circulation in the United States today consist of
A) private bank notes and commodity-backed paper currency. B) commodity-backed paper currency and fiat money. C) fiat money and transaction deposits at banks. D) transaction deposits at banks and commodity money.
Where the IS and LM curves intersect:
a. actual expenditure is equal to planned expenditure. b. output equals aggregate demand. c. savings plus taxes equals investment plus government spending. d. all of the above.
A disadvantage of unit excise taxes is they create the incentive _____
a. for producers to favor smaller products over larger products b. for producers to favor expensive products over inexpensive products c. for buyers to purchase more of the good then they otherwise would d. for buyers to shift to substitute goods with ad valorem excise taxes
Health insurance companies face an asymmetric information problem because:
A. insurance companies have superior information concerning the risk of illness or injury of those insured. B. buyers have superior information concerning their risk of illness or injury. C. the insurance companies and buyers both have equal information concerning the risk of illness or injury of those insured. D. the probability of becoming ill or injured is unrelated to the insured person's occupation.