If the economy is on the flat part of the aggregate supply curve, expansionary fiscal policy works well to increase output with little increase in the price level.
Answer the following statement true (T) or false (F)
True
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The curvature of the production function shows that as employment increases, the productivity of labor
A) remains positive and increases. B) remains positive but decreases. C) decreases and becomes negative. D) remains constant.
When a monopoly lowers its price to increase quantity
A) it is not maximizing its profit. B) it will increase its profit. C) it will make less money on the units it would have originally sold. D) the quantity produced drives down marginal revenue.
A choice architect is someone who:
A. designs areas that have a lot of choices in determining how the space is used. B. determines how people should make decisions inside of a specific environment. C. is in a position to shape the decision-making environment. D. determines which choices are available to builders in a specific area.
Refer to Figure 4-6. What is the value of the portion of consumer surplus that has been transferred to producer surplus as a result of the price floor?
A) $1,200 B) $1,500 C) $1,800 D) $3,000