When a law freezes residential rents at their existing level for as long as the vacancy rate remains below some target level,
A) owners will be encouraged to supply additional rental units.
B) rents will be frozen indefinitely, or at least until the law is changed.
C) affordable housing to low-income people will be guaranteed.
D) the vacancy rate will rise.
B
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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
If the firms in an oligopoly collude, the results will approximate what other type of industry?
a. perfect competition b. monopolistic competition c. monopoly d. none of the above
In adaptive expectations, people and firms
a. immediately change their behavior based on past events. b. perfectly change their behavior based on past events. c. gradually change their behavior based on past events, but not perfectly. d. perfectly and gradually change their behavior based on past events.
The marginal utility gained from the consumption of successive units of a typical good:
A. tends to increase. B. tends to decrease. C. tends to stay the same. D. may increase or decrease depending on the cost of the good.