Picture an economy that is in general equilibrium. What would happen if the natural rate of unemployment were to experience a decrease?
A) according to the Phillips curve, the ensuing negative unemployment gap would exert inflationary pressures
B) according to Okun's Law, the ensuing negative unemployment gap would be consistent with a positive output gap
C) according to the AD-AS framework, the LRAS curve would shift to the right and the ensuing output gap would have to be closed by subsequent rightward shifts in the AS curve to a lower equilibrium level of inflation
D) all of the above
E) none of the above
C
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If Bertrand price competitors incur recurring fixed costs, it will still be a Nash equilibrium for price to equal marginal cost.
Answer the following statement true (T) or false (F)
Which statement is false?
A. Once a monopoly is set up, it is possible to dislodge it. B. Some monopolists have control over an essential resource. C. Several competing firms can provide cheaper service than a natural monopoly. D. As a firm grows larger, at first it realizes economies of scale, but eventually diseconomies of scale set in.
The U.S. poverty rate for:
A. Hispanics is higher than that for African Americans. B. children under 18 years of age is higher than for the overall population. C. African Americans has increased since 1993. D. foreign-born individuals who are not citizens is below the poverty rate for the general population.
In the United States, which of the following is an example of a government-sponsored good?
A. wireless networks B. cable TV service C. community college education D. cigarettes