The conclusion that the level of output is efficient at the market equilibrium rests on all of the following assumptions EXCEPT that __________.
A. buyers and sellers are well-informed
B. there are no external costs or benefits
C. the government regulates price and output
D. the market is perfectly competitive
Answer : C. the government regulates price and output
You might also like to view...
Structural unemployment is:
A. a mismatch between the skills workers can offer and the skills that are in demand. B. unemployment caused by workers who are changing their location, job, or career. C. the effect of wages remaining persistently above the market-clearing level. D. when workers voluntarily quit their jobs.
When governments run budget surpluses, ceteris paribus, public saving as well as national saving decreases
a. True b. False Indicate whether the statement is true or false
Suppose that the economy is at an inflation rate such that unemployment is above the natural rate. How does the economy return to the natural rate of unemployment if this lower inflation rate persists? Use sticky-wage theory to explain your answer
The difference between an inside lag and an outside lag is best described as:
A. an inside lag is the time needed for monetary policy to be effective while an outside lag is the time needed for fiscal policy to be effective. B. an inside lag is usually much longer than an outside lag. C. an inside lag is the time between when a policy change is needed and when the Fed identifies the problem and solution, while an outside lag is the time between a policy decision and its effect on the economy. D. an outside lag is the time between when a policy change is needed and when the Fed identifies the problem and solution, while an inside lag is the time between a policy decision and its effect on the economy.