Suppose the economy is in long-run equilibrium and the government decreases its expenditures. Which of the following helps explain the logic of why the economy moves back to long-run equilibrium?
a. as people revise their price-level expectations upward, firms and workers strike bargains for higher nominal wages.
b. as people revise their price-level expectations upward, firms and workers strike bargains for lower nominal wages.
c. as people revise their price-level expectations downward, firms and workers strike bargains for higher nominal wages.
d. as people revise their price-level expectations downward, firms and workers strike bargains for lower nominal wages.
d
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Which of the following would result from a tariff?
a. An increase in government budget deficit b. An increase in domestic production c. A greater volume of international trade d. Increased domestic consumption e. Decrease in prices of the imported goods
The differences between monetarist and Keynesian theories are more apparent than real
a. True b. False Indicate whether the statement is true or false
What is the difference between the demand curve for a resource under pure competition and under imperfect competition?
What will be an ideal response?