Economists who are in favor of an increase in the size and scope of government tend to prefer ________________ when expansionary _______________ policy is needed to raise aggregate demand
A) tax cuts; fiscal
B) tax cuts; monetary
C) more government spending; fiscal
D) more government spending; monetary
C
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What is the difference between product markets and factor markets?
What will be an ideal response?
Generally, the higher the level of output in an economy is the ________ will be
A) lower the unemployment rate and inflation rate B) higher the unemployment rate and inflation rate C) higher the unemployment rate and the lower inflation rate D) lower the unemployment rate and the higher inflation rate
It is reasonable to assume that in a developed economy technological shocks occur ________ across industries, which ________ the RBC theory of business cycles
A) randomly, opposes B) randomly, supports C) uniformly, opposes D) uniformly, supports
According to the figure, MiiTunes:
This figure displays the choices and payoffs (company profits) of two music shops-MiiTunes and The Rock Shop. MiiTunes is an established business in the area deciding whether to charge its usual high prices or to charge very low prices, in the hopes that a new business will not be able to make a profit at such low prices. The Rock Shop is trying to decide whether or not it should enter the market and compete with MiiTunes.
A. has a dominant strategy to charge low prices.
B. does not have a dominant strategy.
C. has a dominant strategy to charge high prices.
D. has more than one dominant strategy.