Business cycles are a persistent feature of the U.S. economy
a. True
b. False
Indicate whether the statement is true or false
True
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In the short run, a perfectly competitive firm might
A) set its price above marginal cost. B) set its price above marginal revenue. C) adjust the size of its fixed inputs. D) operate even though it is incurring an economic loss.
Which of the following best explains the political attractiveness of debt financing relative to taxation?
a. Debt financing pushes the visible cost of government into the future. b. Debt financing exposes the current costs of government programs; taxes do not. c. Debt financing reduces the attractiveness of special-interest spending. d. Taxes allow politicians to supply voters with immediate benefits without having to impose a visible cost.
Government expenditures on capital goods such as roads could increase aggregate supply. Such effects on aggregate supply are likely to matter more in the short run than in the long run
a. True b. False Indicate whether the statement is true or false
If you left $2,500 on deposit with a bank promising to pay you a 5 percent compound annual rate of interest, then after 50 years your deposit would be worth approximately:
A. $2,625 B. $28,668 C. $11,467 D. $328,750