Which piece of evidence is consistent with zero crowding out?
A) Government purchases rise and Real GDP does not change.
B) Government purchases rise and investment spending declines.
C) Government purchases rise and net exports decline.
D) Government purchases rise and consumption declines.
E) none of the above
E
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For a natural monopoly, the efficient quantity is produced when the firm is regulated so that
A) P = ATC. B) P > ATC. C) P = MC. D) P > MC. E) P < MC.
If the dollar depreciates relative to the Swiss franc
A) Swiss chocolate will become cheaper in the United States. B) American computers will become more expensive in Switzerland. C) Swiss chocolate will become more expensive in the United States. D) Swiss computers will become cheaper in the United States.
During the 1960s, the inflation rate and the unemployment rate were inversely related
a. True b. False Indicate whether the statement is true or false
When the economy is operating at a point where aggregate demand equals short-run aggregate supply, it must be true that:
A. aggregate demand also equals long-run aggregate supply. B. the short-run level of output is not the same as long-run potential output. C. prices are higher than expected prices. D. None of these must be true.