The government increases it purchases. The steeper the short-run aggregate supply curve, the ... will be the increase in the price level and the ... will be the increase in real GDP
What will be an ideal response?
larger; smaller
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Government action can usually perfectly correct the market's shortcomings
a. True b. False Indicate whether the statement is true or false
A monopolist practicing price discrimination will always charge a higher price to the group of consumers which have less elastic demand
Indicate whether the statement is true or false
In 2010 and 2011, many observers were worried that the
A. budget would not be balanced and fiscal stimulus would be withdrawn too soon. B. budget would not be balanced and monetary stimulus would be withdrawn too soon. C. budget would be balanced and fiscal stimulus would be withdrawn too soon. D. budget would be balanced and monetary stimulus would be withdrawn too soon.
Dogfighting is against the law in New Jersey, resulting in high-priced events held illegally in the state. What idea from Chapter 1 of the text does this story best illustrate?
A. There ain't no such thing as a free lunch. B. Social and political forces sometimes rein in market forces. C. The invisible hand is always invisible. D. Maintaining objectivity is easiest in positive economics.