A horizontal aggregate supply curve causes higher inflation, rather than higher output, to result from increases in the money supply.
Answer the following statement true (T) or false (F)
False
A horizontal aggregate supply curve actually causes higher output, and no inflation, to result from increases in the money supply.
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The only way to eliminate all competition from social life would be through
A) abolishing money. B) eliminating all scarcity. C) eliminating all selfishness. D) giving government the power to control everything. E) making everyone as concerned about others as they are about themselves.
The "War on Poverty" was declared by President Ronald Reagan in 1982
a. True b. False Indicate whether the statement is true or false
A corrective tax is intended to: a. cover the costs of negative externalities
b. increase the private benefits of consumption. c. increase the deadweight loss caused by negative externalities. d. increase the deadweight loss caused by positive externalities.
When a resource has a perfectly inelastic supply curve
A) the amount of economic rent for this resource is determined by its supply. B) the amount of economic rent for this resource is determined by demand for the resource. C) the amount of economic rent for this resource is determined by the government. D) there is no economic rent being earned by this resource.