It is believed, by many, that the underground economy has grown in the United States in recent years causing c to increase and to be volatile
This event implies that the money multiplier should ________ and that the Fed should have a(n) ________ job in controlling the money supply. A) increase; easier
B) increase; more difficult
C) decrease; easier
D) decrease; more difficult
D
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When real GDP is less than potential GDP, an increase in government expenditures will __________ real GDP and __________ the price level
a) increase; raise b) increase; lower c) decrease; raise d) decrease; lower
Which of the following provisions of the PPACA do proponents expect to reduce the growth of health care spending?
A. Prohibiting insurers from dropping or denying individuals with preexisting conditions. B. Allowing individuals to purchase coverage through insurance exchanges. C. Subsidizing purchases of insurance for those complying with the personal mandate. D. Expanding access to Medicaid coverage.
Two identical firms that share a market and produce a homogenous good will find the Bertrand Oligopoly LEAST attractive because
A) Cartels generate the highest joint profit. B) a Cournot Oligopoly will generate more profit than a Bertrand Oligopoly. C) they want to avoid a price war that leads to profit erosion and P = MC. D) All of the above.
Refer to the information provided in Figure 5.2 below to answer the question(s) that follow.
?Figure 5.2Refer to Figure 5.2. If the price of a hamburger increases from $8 to $10, the price elasticity of demand equals ________. Use the midpoint formula.
A. -0.33 B. -3.0 C. -30. D. -300