In the IS-LM model, if interest rates rise while output falls the
a. money supply must have fallen.
b. price level must have fallen.
c. money supply must have risen.
d. level of government spending must have fallen.
e. none of the above.
A
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In the neoclassical growth model, the rate of technological process is:
a. 2 percent. b. 0 percent. c. exogenous and not explained. d. endogenous and explained by human capital accumulation.
To understand the process of adding value, managers must understand only the costs of production
Indicate whether the statement is true or false
Suppose external benefits are present in a market which results in the actual market price of $14 and market output of 150 units. How does this outcome compare to the efficient, ideal equilibrium?
a. The efficient outcome would be greater than 150 units. b. The efficient outcome would be less than 150 units. c. The efficient outcome would also be 150 units. d. The efficient price would be less than $14.
Pollution permit policies achieve an ________ outcome because ________.
A. efficient; firms that have the highest cost of reducing pollution will have the greatest incentive to purchase permits. B. inefficient; the supply of permits is set by the government, and so is perfectly inelastic. C. inefficient; wealthier firms can afford to purchase more permits. D. efficient; firms that have the lowest cost of reducing pollution will be able to pay more for each permit.