The supply-side shocks of the 1970s shifted the aggregate supply curve inward
a. True
b. False
Indicate whether the statement is true or false
True
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Keeping in mind the Coase theorem, in the figure above, if the pesticide factories own the lake, the market does what?
A) overproduces 120 tons of pesticide B) underproduces 120 tons of pesticide C) overproduces 60 tons of pesticide D) produces the efficient quantity of pesticide
The Federal Reserve looks at the threshold of capital utilization rates as an indicator of inflationary pressures
Indicate whether the statement is true or false
Keynesian models involve considerable efforts to explain the determinants of
A) the money supply. B) aggregate supply. C) liquidity preference. D) the demand deposit multiplier.
If there is a sole producer of a good, and he faces no threat of competition, it is likely that:
A. the consumer surplus is greater than in a competitive equilibrium. B. the price is set inefficiently high. C. the price is set below the competitive equilibrium price. D. the market is efficient.