The shorter is the interval between firms' price adjustments,
A. a given unexpected increase in aggregate demand will cause a smaller increase in the price level in the short run.
B. a given unexpected increase in aggregate demand will cause a larger increase in output.
C. the greater is the scope for activist policies to stabilize the economy.
D. the smaller is the scope for activist policies to stabilize the economy.
Answer: D
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A country's government would like to raise the price of one its most important agricultural crops, coffee beans. Which of the following government programs will result in higher prices for coffee beans?
A) An import quota on coffee beans B) An acreage limitation program which provides coffee bean farmers financial incentives to leave some of their acreage idle C) An import tariff on coffee beans D) all of the above
All of the following unambiguously contribute to economic growth EXCEPT
A) increase in human capital. B) increase in technology. C) increase in labor productivity. D) increase in government spending.
"Economies of scope" occur when
a. fixed costs are high and marginal costs are low. b. a monopoly can produce for the entire market. c. similar production techniques can be applied to several products. d. costs are fully distributed.
The legislation that extended antitrust legislation to proprietorships and partnerships was the:
A. Sherman Act. B. Hart-Scott-Rodino Act. C. Robinson-Patman Act. D. Celler-Kefauver Act.