After an oil price shock, which of the following would move unemployment back towards its natural rate?
a. the Fed sells bonds
b. the government raises taxes
c. the government increases expenditures
d. All of the above are correct.
c
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Entrepreneurs who earn arbitrage profit are able to do so by extracting the total consumer surplus from buyers
Indicate whether the statement is true or false
The factor of production called "capital" refers to:
A. manufactured goods that are used to produce new goods. B. any piece of raw material that is used to produce goods and services. C. any input that's not a human being or dirt. D. the amount of money a firm has access in order to run its business.
Because there are many sellers in a competitive market, individual firms are unable to maximize profits
a. True b. False Indicate whether the statement is true or false
If elasticity of demand is 1.8, elasticity of supply is 0.2, and a 20 percent excise tax is levied on the good:
A. sellers pay 10 percent of the tax. B. consumers pay 20 percent of the tax. C. consumers pay 10 percent of the tax. D. sellers pay 20 percent of the tax.