A decrease in the expected future price level:
a. Shifts both SRAS and LRAS to the left
b. Shifts both SRAS and LRAS to the right.
c. Shifts SRAS left but leaves LRAS unchanged.
d. Shifts SRAS right but leaves LRAS unchanged.
d
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Which of the following is a characteristic of an institution?
A) The institutions of a nation are permanent and cannot be changed over time. B) Institutions place constraints on the behavior of economic agents. C) Institutions are determined by individual opinions without considering the government's preference. D) Institutions have very little influence on a nation's economic prosperity.
Which of the following is considered a potential solution to some regulatory capture?
A. Bringing industry experts into the regulatory process. B. Creating a standard set of regulations for all industries. C. Deregulation of the industry. D. Government subsidies for firms in the industry.
When the price of a normal good decreases, people increase their consumption of the good. The reason is
A) the law of diminishing marginal utility. B) the substitution and income effects. C) the substitution effect only. D) the income effect only.
Behavioral economists put significant emphasis on using models to:
A. Predict decisions, but not so much to understand how those decisions are made B. Predict decisions and also to understand how those decisions are made C. Understand decision processes, but not the prediction of the decision itself D. Understand people's actions, but not what drive people to act in certain ways