The long-run average total cost curve of a natural monopolist
A. Reflects declining average fixed costs.
B. Falls continuously as more output is produced.
C. Reflects diminishing returns.
D. Is U-shaped.
Answer: B
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When there is positive inflation,
A) growth in nominal GDP exceeds growth in real GDP. B) growth in real GDP exceeds growth in nominal GDP. C) growth in real GDP and nominal GDP are roughly equal. D) there can never be any growth in nominal GDP.
Establishing a unit of value and establishing a standard means of payment are two functions of a monetary system
a. True b. False
Dynamic tax analysis generally predicts
A) that the higher the tax rate is, the higher the tax revenue will continue to be into the future. B) that the higher tax rates lead to higher revenues only to a point at which revenues will begin to decrease due to a diminishing tax base. C) that lower tax rates will always and continuously lead to increased tax revenues. D) that lower tax rates are always going to lead to decreased tax revenues.
If the economy is suffering from an inflationary gap, the Federal Reserve will engage in what type of policy?
a. expansionary fiscal policy b. contractionary fiscal policy c. expansionary monetary policy d. contractionary monetary policy