The cost of maintaining unemployment below its natural rate with expansionary government policy is:
a. increasing inflation
b. decreasing inflation.
c. always a larger federal deficit.
d. always a smaller federal deficit.
a
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To have an effective price support program, the government must
i. isolate the domestic market from the world market. ii. pay the farmers a subsidy. iii. introduce a price floor. A) i only B) ii only C) iii only D) ii and iii E) i, ii, and iii
In a monopoly market,
A. profits will always be positive because the firm is the only supplier in the market. B. other firms have no incentive to enter the market. C. the demand facing the firm is downward-sloping because it is the market demand. D. a and b E. none of the above
The table shows the aggregate demand and aggregate supply schedule for a hypothetical economy.Real Domestic Output Demanded (in Billions)Price Level (Index Value)Real Domestic Output Supplied (in Billions)$3,000350$9,0004,0003008,0005,0002507,0006,0002006,0007,0001505,0008,0001004,000Refer to the above table. If the quantity of real domestic output demanded increased by $2000 at each price level, the new equilibrium price level and quantity of real domestic output would be:
A. 350 and $8000. B. 300 and $8000. C. 200 and $6000. D. 250 and $7000.
The "high-tech revolution" grew out of many tiny start-up operations. This is an argument that more technological change occurs in ________ market structures.
A. oligopolistic B. duopoly C. monopoly D. more competitive