Supply-side policies are designed to achieve
A. A leftward shift in the Phillips curve.
B. A lower inflation rate but a higher unemployment rate.
C. A rightward shift in the Phillips curve.
D. A leftward shift of the aggregate supply curve.
Answer: A
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The capture theory of regulation predicts that
A) regulation helps producers to maximize profits. B) regulators capture the firm's economic profit and transfer it to consumers as consumer surplus. C) regulators eliminate the deadweight loss a monopoly can create. D) resources are used efficiently. E) regulators capture the firm's economic profit and transfer it to themselves.
The disagreement between A. C. Pigou and Ronald Coase arose because
A. Pigou argued that the government should ban all externality-generating activities, while Coase thought that taxes and subsidies should be used instead. B. Coase argued that the government should ban all externality-generating activities, while Pigou thought that taxes and subsidies should be used instead. C. Pigou argued that the government should use taxes and subsidies to adjust for externalities, while Coase proposed a market solution to the externality problem. D. Coase argued that the government should use taxes and subsidies to adjust for externalities, while Pigou proposed a market solution to the externality problem.
Under both perfect competition and monopoly, a firm:
a. is a price taker. b. maximizes profit by setting marginal cost equal to marginal revenue. c. will shut down in the short-run if price falls short of average total cost. d. always earns a pure economic profit.
Products produced in oligopoly markets can be homogeneous.
Answer the following statement true (T) or false (F)