If the economy is at full employment, anything that causes the level of income to change will cause fluctuations in the __________ that will shift the __________ curve and thus help stabilize economic activity
A) price level; IS
B) price level; LM
C) interest rate; IS
D) interest rate; LM
B
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As more people in a developing country started using debit cards, banks installed more ATM machines, thereby benefitting all customers. This is an example of a(n) ________
A) network externality B) pecuniary externality C) adverse selection D) moral hazard
A change in which of the following would NOT shift the supply curve for sneakers?
A) an increase in technology for making sneakers B) an increase in the price of rubber, used to make sneakers C) an increase in the price of sneakers D) None of the above, that is, each change shifts the supply curve
Under which of the following circumstances is the principal-agent problem likely to be most serious
a. Between general practitioners and patients. b. Between surgeons and patients. c. Between hospitals and nurses. d. Between dentists and physicians. e. Between physicians and lawyers.
Platform monopolies can undermine competitive markets because they:
A. symmetrically increase the amount of information available to the market. B. asymmetrically increase the amount of information available to the market. C. decrease the amount of information available to the market. D. increase the amount of information available to the market.