According to adaptive expectations theory, expansionary monetary and fiscal policies to reduce the unemployment rate are:
A. useless in the long run.
B. useless in the short run.
C. ineffective on the price level.
D. successful at achieving the desired outcomes.
Answer: A
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
The elasticity of supply of a good that is produced in a perfectly competitive industry is close to zero
a. True b. False Indicate whether the statement is true or false
A $0.10 tax levied on the sellers of chocolate bars will cause the
a. supply curve for chocolate bars to shift down by $0.10. b. supply curve for chocolate bars to shift up by $0.10. c. demand curve for chocolate bars to shift down by $0.10. d. demand curve for chocolate bars to shift up by $0.10.
For a perfectly competitive firm, the demand curve
a. coincides with the marginal revenue curve. b. both of the other answers are true c. coincides with the market price.