The marginal cost of consuming another unit of a good:
A. must exceed the marginal benefit or the unit will not be consumed.
B. equals the total cost of consuming all prior units.
C. equals the increase in total cost when another unit is consumed.
D. must equal the marginal benefit or the unit will not be consumed.
Answer: C
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In the 1960s, many economists and policy makers considered the trade-off between inflation and unemployment revealed in the Phillips curve to be permanent
This belief was challenged by ________, who argued that there is no trade-off between inflation and unemployment and the long run. A) Paul Samuelson and James Tobin B) Robert Lucas and Thomas Sargent C) Finn Kydland and Edward Prescott D) Milton Friedman and Edmund Phelps
State and local governments typically spend most of their budgets on providing
a. education. b. public goods. c. public welfare programs. d. police protection and administrative services.
By increasing government spending
What will be an ideal response?
Refer to the information provided in Figure 32.2 below to answer the question(s) that follow.
Figure 32.2Refer to Figure 32.2. According to Keynes, an expansionary monetary policy in the long run and after all the adjustments have been made
A. increases equilibrium output above Y1. B. increases equilibrium output above Y1 and decreases the price level below P1. C. decreases equilibrium output below Y1. D. does not increase equilibrium output.