Once either expansionary or contractionary fiscal policy has been undertaken,
A. a time lag exists between implementation and the results of the policy.
B. taxes will need to be adjusted because of the recognition time lag.
C. aggregate demand will respond quickly in the short run but the economy will not improve in the long-run.
D. aggregate demand will respond quickly and the problems in the economy will be corrected.
Answer: A
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A firm's demand for labor curve is the same as the firm's
A) marginal product curve. B) marginal cost curve. C) marginal revenue curve. D) value of marginal product curve.
All of the following are exempt from antitrust laws EXCEPT
A) labor unions. B) professional baseball. C) oil companies. D) public utilities.
A firm with market power in pricing faces a
A. downward-sloping demand curve. B. downward-sloping supply curve. C. supply curve parallel to the horizontal axis. D. flat demand curve.
If the unemployment rate increases from 10% to 14%, the economy will
A. move away from the ppf toward the origin. B. remain on the ppf. C. remain on the origin. D. move closer to a point on the ppf.