According to the Lucas supply function, ________ affect(s) both actual and expected price levels in the same way.
A. only announced fiscal policy changes
B. any unanticipated policy change
C. any announced policy change
D. only announced monetary policy changes
Answer: C
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The above figure shows one of Sam's indifference curves between gasoline and coffee. Which of the following about a movement along Sam's indifference curve is CORRECT?
A) As he moves leftward along the curve, he likes the combinations of gasoline and coffee better and better. B) As he moves rightward along the curve, he likes the combinations of gasoline and coffee better and better. C) He likes all combinations of gasoline and coffee along the curve equally well. D) None of the above is true.
Why cannot firms leave the industry in the short run?
What will be an ideal response?
If bundles of goods A and B lie on the same indifference curve, one can assume the individual
a. prefers bundle A to bundle B. b. prefers bundle B to bundle A. c. enjoys bundle A and B equally. d. bundle A contains the same goods as bundle B.
In agriculture, where firms producing similar goods are often located near each other, supervision of neighboring firm activity is fairly easy. When these firms come together formally to agree on price and restraint of output, their organization is called a(n)
a. collusive venture b. cartel c. cooperative d. agricultural merger e. conglomerate