According to monetarists, a fiscal deficit will be associated with an increase in real output:
A. regardless of the character of accompanying changes in M or V.
B. only if it is accompanied by an increase in the demand for money.
C. only if it is accompanied by an increase in the supply of money.
D. only if it is financed by selling government bonds to the public.
C. only if it is accompanied by an increase in the supply of money.
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Assuming that firms maximize profits, how will the price and output policy of an unregulated monopolist compare with ideal market efficiency?
a. The output of the monopolist will be too large and the price too high. b. The output of the monopolist will be too large and the price too low. c. The output of the monopolist will be too small and the price too high. d. The output of the monopolist will be too small and the price too low.
Suppose Lando Calrissian owns a smuggling business whose total revenue is $30,000 per month. The accompanying table shows Lando's monthly expenses. If Lando weren't a smuggler, he would earn $6,000 per month working for the Rebel Alliance. Apart from pay, Lando is indifferent between working as a smuggler and working for the Rebel Alliance.Fuel$4,000Maintenance$12,000Weapons$6,000Bribes$3,000 In the long run, we would expect Lando to:
A. continue smuggling since his economic profit from smuggling is positive. B. join the Rebel Alliance since his economic profit from smuggling is negative. C. continue smuggling since his accounting profit from smuggling is positive. D. join the Rebel Alliance since his accounting profit from smuggling is negative.
Other things the same, if workers and firms expected prices to rise by 2 percent but instead they rise by 3 percent, then
a. employment and production rise. b. employment rises and production falls. c. employment falls and production rises. d. employment and production fall.
If a country has a trade deficit of $30 billion, which of the following can be true?
A. The country's exports are $140 billion, and its imports are $40 billion. B. The country's exports are $110 billion, and its imports are $140 billion. C. The country's exports are $120 billion, and its imports are $140 billion. D. The country's exports are $150 billion, and its imports are $120 billion.