All of the costs associated with making and enforcing contracts are referred to as
A) alternative costs.
B) opportunity costs.
C) marginal costs.
D) transactions costs.
D
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According to the monetarist theory, an increase in government spending would have
a. only weak effects on both output and the price level. b. a weak effect on output with a strong effect on the price level. c. a weak effect on the price level but a strong output effect. d. stronger effects on output if financed with increases in the money supply. e. both a and d.
Monopolistically competitive firms ignore the effect of their decisions upon other firms in the industry because
a. each firm is large relative to the market b. each firm is small relative to the market c. there are few sellers in the market d. there is only one seller in the market e. all firms follow the same known pricing rules
What is the value of any index in the base period?
a. 200 b. 150 c. 110 d. 100 e. 105
Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C