New classical economists like Robert Lucas argue that the Great Depression was primarily caused by
a. lots of mistaken expectations about the future.
b. significant falls in investment.
c. significant falls in the money supply.
d. significant increases in taxes.
e. all of the above.
A
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If the value that people, on average, receive from a common property exceeds the marginal cost of its use, then
a. more people will use the common property. b. social gain is as large as possible. c. the common property creates zero economic rent. d. demand for the common property will fall.
Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
Which of the following changes would not result in a shift in the demand curve for milk?
A. A change in the income of buyers of milk B. A change in the price of milk C. A change in the population D. A medical report that milk consumption increases cholesterol.
Explain how patents have been beneficial for markets
What will be an ideal response?