The Lucas supply function implies that only anticipated policy changes have an effect on real output.
Answer the following statement true (T) or false (F)
False
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The potential problem with competitive pricing regulation of a natural monopoly is that ________.
A. P < MR B. P < ATC C. P < AVC D. P < MC
If the MPC = 3/4, an increase in government purchases of $40 billion will ultimately lead to:
a. a $160 billion increase in aggregate demand. b. a $40 billion increase in aggregate demand. c. a $30 billion increase in aggregate demand. d. a $30 billion decrease in aggregate demand.
The PPP theory is most useful in predicting:
A. short-run changes in the exchange rate for a country that mainly produces lightly-traded standardized goods. B. short-run changes in the exchange rate for a country that mainly produces heavily-traded standardized goods. C. long-run changes in the exchange rate for a country that mainly produces heavily-traded standardized goods. D. long-run changes in the exchange rate for a country that mainly produces lightly-traded non-standardized goods.
Real GDP per capita is a
A. better measure of the physical environment than output. B. worse measure of the physical environment than output. C. better measure of personal material consumption than output. D. worse measure of personal material consumption than output.