In 2008–2010, American policymakers decided to risk
A. higher inflation for the sake of decreasing unemployment.
B. higher unemployment to hold down inflation.
C. increasing taxes for the sake of reducing the budget deficit.
D. reducing government spending for the sake of balancing the budget.
Answer: A
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A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
If firms in an oligopolistic industry consistently cut their price to sell more output, what price and output will result?
A) the monopoly price and output B) the competitive price and output C) the monopolistically competitive price and output D) a price lower than the competitive price and less output than the competitive amount E) a price lower than the competitive price and more output than the competitive amount
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record sales can be pretty well predicted. However, once they get approval for their budgets, why do producers sometimes sign riskier acts who either flop or "break-out" into the next sensation?
An increase in the dollar price of the Mexican peso (an appreciation of the peso) would cause
a. Mexico's imports to increase and exports to decline. b. Mexico's exports to increase and imports to decline. c. both Mexico's imports and exports to decline. d. both Mexico's imports and exports to rise.