The government may enact contractionary fiscal policy if there are concerns about
A. excessive inflation.
B. declining output.
C. high unemployment.
D. high tax rates.
Answer: A
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The rational expectations hypothesis suggests that if wages and prices are flexible,
A) unanticipated monetary policy actions can shift the long-run aggregate supply curve but cannot shift the aggregate demand curve. B) anticipated monetary policy actions can affect nominal variables, but not real variables. C) unanticipated monetary policy actions can affect real variables, but not nominal variables. D) growth in the money supply can alter real variables only if the growth is anticipated.
Under the original Clayton Act, which of the following was not illegal?
a. Charging different prices for the same product. b. Exclusive dealer agreements. c. The purchase of the stock of a rival firm that lessens competition. d. The purchase of the assets of a rival firm that lessens competition.
Which of the following affects the rate of economic growth? a. the quality of available resources. b. the quantity of available resources. c. technological change
d. all of the above.
Describe the output and price effects that influence the profit-maximizing decision faced by a firm in an oligopoly market. How does this differ from output and price effects in a monopoly market?