For a monopolist, at the profit-maximizing level of output price is:
A. equal to marginal revenue.
B. equal to marginal cost.
C. chosen according to demand.
D. constant.
C. chosen according to demand.
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For each of the following values of nominal GDP and real GDP, calculate the GDP price deflator
a) Nominal GDP = $600; real GDP = $800. b) Nominal GDP = $900; real GDP = $900. c) Nominal GDP = $1,200; real GDP = $1,000
A larger budget surplus
a. raises the interest rate and investment. b. reduces the interest rate and investment. c. raises the interest rate and reduces investment. d. reduces the interest rate and raises investment.
If we were to change the interpretation of the term "loanable funds" in such a way that government budget deficits would affect the demand for loanable funds, rather than the supply of loanable funds, then
a. crowding out would not be a consequence of an increase in the budget deficit. b. higher interest rates would not be a consequence of an increase in the budget deficit. c. an increase in the budget deficit would cause the demand for loanable funds to decrease. d. we would be making only a semantic change in how we analyze the effects of government budget deficits.
The period between the implementation of a policy and its intended result is known as
A. the effect time lag. B. the action time lag. C. the data lag. D. the recognition time lag.