In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:
A. higher prices.
B. lower prices.
C. lower output.
D. None of these is true.
Answer: D
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An increase in the public debt would most likely indicate that
A) national saving has increased. B) the budget deficit has increased. C) the budget deficit has decreased. D) the trade deficit has decreased.
Equilibrium in the Keynesian model is
a. quite stable, unless the government does something to throw it off balance. b. stable as long as planned injections are equal to planned leakages. c. not affected much by taxes or government spending. d. not a significant concept in Keynesian analysis.
For the courts, being too big a firm in an industry can be sufficient grounds, using the per se criterion, to charge the firm with violating antitrust laws
Indicate whether the statement is true or false
When people became less concerned with the underlying value of their houses and instead focused on the expectations of the prices of their houses increasing, ________ occurred
A) stagflation B) an automatic destabilizer C) a housing bubble D) a supply shock