According to Keynesians, the primary reason money is not neutral is
A. price stickiness.
B. reverse causation.
C. rational expectations.
D. misperceptions over the aggregate price level.
Answer: A
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The second step of the four step process is to
a. identify the new equilibrium and then compare the original equilibrium price and quantity to the new equilibrium price and quantity. b. decide whether the economic change being analyzed affects demand or supply. c. draw a demand and supply model before the economic change took place. d. decide whether the effect on demand or supply causes the curve to shift to the right or to the left, and sketch the new demand or supply curve on the diagram.
The major goal of the Pesticide Environmental Stewardship Program (PESP) is
a. to control pesticide use b. to determine which pesticides must be banned c. to achieve pollution prevention by reducing the use of pesticides d. to accelerate the pesticide registration and reregistration processes
Suppose that the government increases expenditures by $150 billion while increasing taxes by $150 billion. Suppose that the MPC is .80 and that there are no crowding out or accelerator effects. What is the combined effects of these changes? Why is the combined change not equal to zero?
The perfectly competitive, profit-maximizing rate of production
A) occurs at the point at which marginal revenue is equal to marginal cost. B) occurs at the point at which the difference between marginal revenue and marginal cost is maximized. C) is not measurable for a perfectly competitive firm. D) ignores the relation of total revenues and total costs.