In the simple Keynesian framework, declines in planned investment spending that produce high unemployment can be offset by raising
A) taxes.
B) government spending.
C) consumer confidence.
D) business confidence.
B
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A monopoly, unlike a perfect competitor, has total control in its market because it is the single producer. Why, then, must a single-price monopoly decrease its price if it wants to increase its output?
What will be an ideal response?
Suppose the government of Marina aims to minimize the deadweight loss of subsidy. It should: a. provide a subsidy in a market with more inelastic demand. b. provide a subsidy in a market with unit elastic supply
c. provide a subsidy in a market with more elastic demand. d. provide a subsidy in a market with perfectly elastic supply.
A group of producers that agree to set common pricing or output goals is known as a
A) cartel. B) conglomerate. C) perfect competitor. D) monopoly.
A move from N to O best represents a
A. An increase in quantity demanded.
B. A decrease in quantity demanded.
C. increase in demand.
D. decrease in demand.