Anti-inflationary policy is less costly when that policy is anticipated in ________
A) traditional Keynesian theory
B) new Keynesian theory
C) real business cycle theory
D) institutionalist theory
B
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Refer to Figure 2-1. Point C is
A) technically efficient. B) unattainable with current resources. C) inefficient in that not all resources are being used. D) is the equilibrium output combination.
Which of the following is true with regards to a long-run cost function?
a. The shape of the firm's long-run cost function is important in decisions to expand the scale of operations b. The long-run average cost curve is U-shaped c. The long-run average cost curve is flatter than the short-run average cost curve. d. The curve consists of the lower boundary of all the short-run cost curves e. All of the above
If a student enrolls in an additional course at the university, an economist would conclude that: a. the total benefit that the student expects to receive as a result of completing her college degree exceeds the total cost of her college education. b. the student is not following the rule of rational choice
c. the student must not be involved in extracurricular campus activities. d. the expected marginal benefit of an additional course must exceed the expected marginal cost of the course.
In the nineteenth century, U.S. farmers were ordinarily debtors. Farmers typically borrowed from banks to develop new acreage and to be able to purchase necessary inputs prior to each growing season. Why did farmers generally support public policies that were inflationary?