Economists before Keynes assumed that equilibrium GDP occurred
a. automatically.
b. only with the help of government stabilization.
c. if spending was generally greater than output.
d. only in socialist economies with central planning.
a
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The demand for the product of a monopolistically competitive firm is highly elastic when
A) firms collude. B) there are fewer firms in the industry. C) there is a lot of product differentiation. D) there are a lot of close substitutes.
Assume that A and B are two events in the sample space such that Pr[A/B] is 2/3, Pr[B] is 1/4, and Pr[A] is 1/6 . Applying the Bayesian reasoning calculate the probability Pr[B/A]
a. Pr[B/A]=0 b. Pr[B/A]=0.75 c. Pr[B/A]=1 d. Pr[B/A]=0.5
Describe any three price indices published by the Bureau of Labor Statistics that are not based on baskets of consumer goods
If expected inflation were 5%, and the real interest rate was 3%, what sector would be worse off if the actual inflation rate turned out to be 2%
a. Businesses. b. Laborers. c. Both. d. None.