A condition necessary for a country to achieve economic growth is
A) high tax rates so the government can purchase a lot of capital equipment.
B) strict environmental regulations.
C) economic freedom.
D) government control of the banking system.
E) democracy.
C
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With which of the following statements would a "real business cycle" theorist most closely agree?
A) "Expansionary monetary policy allows the central bank to control inflation and unemployment simultaneously." B) "Monetary policies have the greatest impact on real GDP when they are anticipated." C) "Wages adjust rapidly to changes in inflation as long as expectations are formed rationally." D) "Technological shocks to the economy affect only aggregate demand in the short run."
Which of the following is true of an increase in the federal government budget surplus? a. An increase in surplus results in a decrease in the national saving. b. An increase in surplus shifts the aggregate demand curve rightward. c. An increase in surplus increases the federal debt
d. An increase in surplus dampens aggregate demand in the short run. e. An increase in surplus increases the natural rate of unemployment.
When advertising is used to relay information about price, each firm is able to enhance market power
a. True b. False Indicate whether the statement is true or false
Which of the following statements comparing monopoly with competition is correct?
a. A monopolist produces a higher level of output and charges a lower price than a competitive firm would. b. With perfect price discrimination, the total surplus under monopoly can be the same as under competition. c. With or without price discrimination, the consumer surplus under monopoly is at least as large as it would be under competition. d. The deadweight loss associated with monopoly is caused by the positive economic profits of the monopolist; competitive firms do not earn a positive economic profit so there is no deadweight loss under competition.