What assumptions do economists make about the time period known as the short run?
What will be an ideal response?
(1.) The firm is operating under a fixed scale of production (some factor is fixed).
(2.) Firms can neither enter nor exit the industry.
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An example of a policy aimed at economic development that would also indirectly impact poverty would be:
A. food stamps. B. public investments in education. C. earned income tax credit. D. All of these will cause economic growth and positively impact poverty.
According to John Taylor (for whom the Taylor rule is named), during the period 2002-early 2006 actual Fed policy was "too_________" , which he believes led to both interest rates being "too ________" and rising housing prices in the United States
A) contractionary; high B) contractionary; low C) expansionary; low D) expansionary; high
A car leasing company that expands its size by buying its competitors may run the risk of increasing production cost per unit due to:
A. diseconomies of scale. B. economies of scale. C. diminishing returns. D. greater use of large-volume purchases.
Compared to the size of GDP in 2014, the net national debt was approximately
A. 10 percent as large. B. 33 percent as large. C. 60 percent as large. D. about twice as large.