Why might an expansion in government spending increase the severity of the coordination problem during a recession?
a. Increases in government spending will not affect the composition of aggregate demand.
b. Congress is unlikely to approve increases in government spending during a recession.
c. Spending increases will be driven by political considerations and will often flow into areas where resources are already fully employed.
d. Government spending can be counted on to flow toward high productivity projects.
C
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Structural unemployment is increased when workers can afford to be unemployed for longer periods of time as a result of:
A. unemployment insurance. B. minimum wage laws. C. worker mobility. D. skill-biased technological change.
Which of the following is a strategy(ies) used by firms in monopolistically competitive industries to convince consumers that their product is better than their rivals' products?
A. Equity marketing B. Comparative advertising or niche marketing C. Comparative advertising D. Niche marketing
Why would economies of scale be a barrier to entry?
What will be an ideal response?
A medical researcher suggests that the new flu shot will prevent all forms of the flu, but it was never tested or proved to be true. Which of the following antitrust acts are being violated?
A. Clayton Act B. Sherman Act C. Federal Trade Commission Act D. No Antitrust law is being violated