Which statement is the most accurate?
A. The monopolist produces at the minimum point of its average total cost curve.
B. The monopolist breaks even in the long run.
C. The monopolist faces the entire industry demand curve.
D. Nearly all monopolists are very large firms.
C. The monopolist faces the entire industry demand curve.
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For each one dollar increase in real GDP, aggregate planned expenditure
A) increases by less than a dollar. B) increases only if autonomous expenditure increases. C) increases by one dollar. D) increases by more than a dollar. E) is unaffected.
The Gini coefficient is really a point estimate of equality at a certain time period. Why is this a limiting factor when it comes to examining issues of equality over a lifetime?
What will be an ideal response?
If a 200 billion dollar increase in government spending occurs when the Fed seeks to maintain a fixed interest rate then
A) there is no crowding out, the LM curve shifts to offset the shift in the IS curve. B) there is no crowding out, the monetary policy is fixes as is the LM curve fixed. C) crowding out is assured since monetary policy is fixed. D) crowding out is assured since the Fed will accommodate the spending increases.
What will cause a decrease in US AD?
a. an increase in interest rates b. a boost in consumer confidence c. a decrease in business material costs d. an increase in M1 and M2