In the new Keynesian model, if an aggregate demand increase is anticipated, then ________
A) aggregate demand will not change
B) short-run aggregate supply will shift up immediately
C) short-run aggregate supply will shift down immediately
D) there is no immediate effect on the short-run supply curve
B
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Discouraged workers are considered unemployed
Indicate whether the statement is true or false
In order to dispose of nuclear waste created by power plants around the country, the government buys land in Glowing Gulch, Idaho. Citizens of that town organize to block construction of the nuclear waste facility. Which of the following statements is false?
a. The benefits of the nuclear waste facility are widespread. b. The costs of the nuclear waste facility are concentrated. c. The citizens of Glowing Gulch are a special-interest group. d. Consumers of the power generated at the nuclear plants are not likely to organize to support construction of the nuclear waste facility. e. The citizens of Glowing Gulch are equally concerned about all public issues.
Which of the following statements is false?
A) Another term for a Treasury bill is a T-bill. B) Treasury notes mature in 2 to 10 years. C) Treasury bonds are considered very safe investments, but Treasury bills are considered to be a more risky investment. D) It is unlikely the federal government will default on its bond obligations.
In long-run equilibrium, a perfectly competitive firm will operate where price is
A. equal to MR, MC, and the minimum ATC. B. greater than MC and the minimum ATC, but equal to MR. C. greater than MR but equal to MC and the minimum ATC. D. greater than MR and MC, but equal to the minimum ATC.