Refer to Figures b and c. In the figures above, the probability of sunny weather, state S, is higher in:
A. Figure b.
B. Figure c.
C. bundle C versus A in both figures.
D. bundle A versus C in both figures.
A. Figure b.
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To economists, the main differences between "the short run" and "the long run" are that
A. the law of diminishing returns applies in the long run, but not in the short run. B. in the short run all resources are fixed, while in the long run all resources are variable. C. in the long run all resources are variable, while in the short run at least one resource is fixed. D. fixed inputs are more important to decision making in the long run than they are in the short run.
The "real" price of a good is known as
A) the absolute price of the good. B) the dollar price of the good since we use dollars in the United States. C) relative price of the good. D) the price actually paid for a good instead of the sticker price.
Assume that an economy's real GDP multiplier is 4 . If this economy is in equilibrium at $2,000 billion, then which one of the following actions will bring it to a full employment equilibrium of $1,500 billion?
a. $500 billion spending cut. b. $500 billion spending increase. c. $125 billion spending cut. d. $125 billion spending increase. e. $2,000 billion spending cut.
Active labor market policies:
What will be an ideal response?