The time it takes for an additional dollar of net government expenditures to work its way through the economy and have its full effect
A) is about one quarter of a year.
B) is between one and two years.
C) is not yet known precisely because little empirical research has been done on the question.
D) probably cannot be predicted from an examination of historical data.
D
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If the firm in the given graph were to maximize profits, it would:
These are the cost and revenue curves associated with a firm.
A. produce Q1 and charge P3.
B. cause deadweight loss.
C. earn zero economic profits.
D. All of these statements are true.
When we say the cost of living has gone up, we mean that, looking broadly over a range of goods and services:
A. a dollar buys more today than it used to buy. B. our income has increased to match the cost of those goods. C. a dollar buys the same today as it used to buy. D. a dollar buys less today than it used to buy.
Assume that the price elasticity of demand is ?0.75 for a certain firm's product. If the firm lowers price, the firm's managers can expect total revenue to:
A. remain constant. B. decrease. C. increase. D. either increase or remain constant, depending upon the size of the price decrease.
Cross-price elasticity refers to
A. How responsive consumers are to a change in price. B. How responsive consumers are to a change in income. C. How responsive consumers are to a change in quantity demanded. D. How responsive consumers of one good are to a change in the price of another good.