Which of the following statements is NOT true?
A. The United States government ensures that competition flourishes, that information flows freely, and that property rights are protected.
B. The price mechanism will work best if there are a enough firms in each industry to ensure that no one firm can influence price.
C. Environmental pollution is considered a market failure.
D. Everything produced by the public sector is a public good.
D. Everything produced by the public sector is a public good.
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If the quantity of real GDP supplied equals the quantity of real GDP demanded, then
A) nominal GDP must equal real GDP. B) real GDP must equal potential GDP. C) real GDP must be greater than potential GDP. D) real GDP might be greater than, equal to, or less than potential GDP. E) real GDP must be less than potential GDP.
Refer to Figure 15-1. In the figure above, the money demand curve would move from Money demand1 to Money demand2 if
A) the price level increased. B) real GDP decreased. C) the interest rate decreased. D) the Federal Reserve sold Treasury securities.
When we add a personal income tax to the macroeconomic model, the
a. multiplier becomes larger. b. multiplier becomes smaller. c. expenditures schedule shifts upward. d. expenditures schedule becomes steeper.
When a competitive price-searcher market is in long-run equilibrium, the firms will
a. earn economic profit. b. operate at an output level that minimizes long-run average total cost. c. charge a price that is equal to average total cost. d. operate at an output level where price is equal to marginal cost.