Which of the following can help shape the incentive structure of the country of Gammaland?
a. resource availability
b. prices
c. income
d. incentives
e. All of the answers are correct
E
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An upward shift in the Fed's reaction function is equivalent to:
A. an increase in the Fed's long-term target for inflation. B. a decline in the Fed's long-term target for inflation. C. a downward shift of short-run aggregate supply D. an upward shift of short-run aggregate supply
If the aggregate supply curve is flat,
a. expansionary fiscal or monetary policy will cause a good deal of inflation with little increase in real output. b. expansionary fiscal or monetary policy will buy large gains in real output at low cost in terms of inflation. c. a contractionary stabilization policy is an effective way to reduce inflation. d. decreasing the income tax will not shift aggregate demand.
Which of the following is not correct?
a. Economics is a study of the choices that people make and the resulting interactions they have with one another. b. In areas it has already studied, economists have found perfect and unchanging answers. c. Economists are trying to expand their understanding of human behavior and society. d. The economics of asymmetric information, political economy, and behavioral economics are all topics at the frontier of microeconomics.
Assume that the market for soybeans is purely competitive. Currently, firms growing soybeans are experiencing economic profits. In the long run, we can expect this market's:
A. supply to decrease. B. supply to increase. C. demand to decrease. D. demand to increase.