Suppose current government spending decreases and that individuals expect future government spending to decrease. Given this information, in which of the following cases will output in the current period be more likely to decrease?
A) Individuals consider only the short run effects of changes in future macro variables when forming expectations of future output and future interest rates.
B) Individuals consider only the medium run effects of changes in future macro variables when forming expectations of future output and future interest rates.
C) Individuals consider only the long run effects of changes in future macro variables when forming expectations of future output and future interest rates.
D) The output effects will be the same in B and C.
A
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According to the textbook, the noise of jet engines is not a negative externality for baggage handlers
A) because it leaves no residue in the environment. B) because the benefits are greater than the costs. C) because they are paid to live with the noise. D) because they wear hearing-protection devices. E) unless it leaves them with permanent hearing loss.
Based on the analysis of Alice Hanson Jones, what colonial region showed the most unequal distribution of wealth?
a. New England. b. Middle Colonies. c. South. d. Distribution was similar in all colonies.
Which of the following is a reason for the change in labor union membership since the 1970s?
a. Workers have moved out of manufacturing and into the service sector. b. The government has increased regulation of heavily unionized industries. c. Global competition has fallen and led to more “home-grown” manufacturing. d. Newer models include project-based learning, maker spaces, and coworking.
Refer to Table 7.1, which shows the relationship between the price that Gladys charges for a product and the quantity of that product that Gladys sells. Gladys' marginal revenue becomes negative starting with the production of which unit?
A. 2 B. 4 C. 6 D. None of these; marginal revenue is always positive or zero.