If people correctly anticipate the effects of expansionary policy, an increase in the growth rate of aggregate demand will tend to increase real GDP:
a. in both the short run and the long run.
b. in the short run but not the long run
c. in the long run but not the short run.
d. in neither the short run nor the long run.
d
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The above diagram shows the cost curves for a perfectly competitive wheat farmer. At what price does the wheat farmer shut down?
What will be an ideal response?
Which of the following is the best example of a normative question?
A. Will increasing the money supply affect interest rates? B. How does the market for corn work? C. Will the redistribution of income make society better off? D. How do prices affect the market for coffee?
Carlos uses a company's blog to announce new merchandise, get feedback from customers, and allow customers to share information about his products. His frequent customers use his his blog on a regular basis to keep up with what is happening with the company's products and to share product preferences. This is called
Pollution
A. is absent in a free market economy. B. exists because air and water are privately owned resources. C. is increased when property rights are defined. D. creates a negative externality.