According to classical macroeconomic theory,
a. output is determined by the supplies of capital and labor and the available production technology.
b. for any given level of output, the interest rate adjusts to balance the supply of, and demand for, loanable funds.
c. given output and the interest rate, the price level adjusts to balance the supply of, and demand for, money.
d. All of the above are correct.
d
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Price discrimination by sellers usually results in
A) coercing people into buying goods they don't want to purchase. B) coercing people into paying higher prices than they want to pay. C) less total but more net revenue for the seller. D) new and additional opportunities for some buyers.
The fact that you may not know who your congressional representative is represents
A) rational ignorance on your part. B) the rival nature of information. C) inefficient oversupply of public servants. D) the use of the median voter theorem.
An increase in real interest rates will ________ current consumption for households who are lenders and will ________ current consumption for households who are borrowers
A) increase; decrease B) decrease; increase C) have an unclear effect on; decrease D) decrease; have an unclear effect on
A change in regulations increases the size of the airplanes that can fly into a local regional airport. The increase in average plane size increases noise pollution considerably
If compensation is to be paid to those harmed by this externality, the most efficient form of compensation would be _____. a. a lump sum payment b. a payment per violation c. a set payment every month d. regular payments equal to the monthly cost imposed on homeowners