In the past twenty years the economy's responsiveness to monetary policy has become
A) weaker and more stretched out.
B) weaker and shorter.
C) stronger and more stretched out.
D) stronger and shorter.
A
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In the classical theory of aggregate demand, a decrease in the velocity of money leads to
a. a downward shift in the aggregate demand curve, a fall in prices, and no change in output. b. an increase in the aggregate demand curve, a rise in prices, and no change in output. c. no change in aggregate demand or supply because higher velocity increases the money supply. d. an upward shift in the aggregate demand curve, a fall in prices, and no change in output.
Some policymakers have argued that products like cigarettes, alcohol, and sweetened soda generate negative externalities in consumption. If the government decided to impose a tax on soda, the government will cause
A) consumers to internalize the externality. B) producers to internalize the externality. C) the external cost to drinking soda to become a private cost paid by the government. D) the external cost to drinking soda to become a private cost paid by producers.
Economic systems should only be judged on efficiency.
Answer the following statement true (T) or false (F)
In monopolistic competition, if a firm advertises and raises its product, it tends to:
A. Raise costs and increase demand for its product B. Raise costs and decrease demand for its product C. Lower costs and increase demand for its product D. Lower costs and decrease demand for its product