If the public believes that the commitment to a nominal anchor is not credible, the effect of a negative aggregate demand shock is for ________
A) short-run aggregate supply to shift down
B) short-run aggregate supply to remain unchanged
C) short-run aggregate supply to shift up
D) inflation, but not economic activity, to decrease
C
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Refer to the Article Summary. A merger between two competitors such as Staples and Office Depot may ultimately be approved by the Department of Justice and the FTC if the two companies can substantiate ________ as a result of the merger
A) increases in economic efficiency B) an increase in the HHI to over 1,800 C) increases in revenue for the merged company D) decreases in marginal revenue for the merged company
What is ‘government failure'? How would you draw the line between public and private activity?
What will be an ideal response?
If a health insurer charges a rate equal to the average cost of health care for the entire population, then it is likely that
A) everyone buys health insurance. B) unhealthy people will not buy health insurance. C) healthy people will not buy health insurance. D) nobody will buy health insurance.
A motive for FDI includes
A) the extraction of natural resources. B) a multinational corporation attempting to jump over trade restrictions. C) high transportation costs. D) All of the above