According to Keynesian macroeconomists, prices adjust ________ to shocks, so the government should ________.
A. slowly; fight recessions
B. rapidly; do little
C. slowly; do little
D. rapidly; fight recessions
Answer: A
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All of the following except ____ are shortcomings of cost-benefit analysis
a. difficulty in measuring third-party costs b. difficulty in measuring third-party benefits c. failure to consider the time value of benefits and costs d. difficulty of accounting for program interactions e. a and b
The law of diminishing marginal utility states that:
a. additional utility increases with each unit added. b. utility is equal to the number of units acquired. c. utility grows as units become scarcer. d. additional utility decreases with each unit added.
In the basic 45-degree line model, what is the effect of an increase in the price level?
a. There will be movement to the left on the expenditure line. b. There will be movement to the right on the expenditure line. c. The expenditure line will shift downward. d. The expenditure line will shift upward.
Refer to the information provided in Figure 9.7 below to answer the question(s) that follow. 
Figure 9.7 Refer to Figure 9.7. The type of industry depicted in this situation is
A. an increasing-cost industry. B. a constant-cost industry. C. a decreasing-cost industry. D. impossible to determine from this information.