If an economy uses monetary policy as its stabilization tool, the real interest rate and thus ________-run economic welfare depend on that economy's ________ policy
A) short, monetary
B) short, fiscal
C) long, monetary
D) long, fiscal
D
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Business optimism about future sales tends to __________ investment expenditures, shifting the AD curve to the __________
A) increase; left B) increase; right C) decrease; left D) decrease; right
Suppose that there is only one seller in the computer industry. If the demand curve that the only seller in the industry faces is a straight-line, downward-sloping curve, at which point would the seller's total revenue be maximized?
A. at the highest point on the demand curve, where price is the highest B. at a point high on the demand curve, where elasticity is elastic C. at the midpoint of the demand curve, where elasticity is unitary D. at a point low on the demand curve, but not at the very bottom
Nondefense government spending has been more or less flat going as far back as the
A. 1980s. B. 1940s. C. 1950s. D. 1970s.
Marginal product in the short run:
A. increases at all levels of production. B. diminishes at all levels of production. C. may initially increase, then eventually decrease. D. may initially decrease, then eventually increase.