Information asymmetry means: 0-
A. people have good enough information to make acceptable choices, but not complete information.
B. complete information is not possible to obtain.
C. the lack of information in a market prevents it from existing.
D. a situation in which one person knows more than another.
D. a situation in which one person knows more than another.
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Using graphs, explain how indirect crowding out can occur when the government increases spending in an attempt to stimulate the economy
What will be an ideal response?
The opportunity cost of going to the movies is always the same for everyone
a. True b. False Indicate whether the statement is true or false
Accounting profit minus implicit costs equals:
A. total revenues. B. fixed costs. C. explicit costs. D. economic profit.
Figure 14-5
In , AD1 and SRAS1 indicate an economy initially operating at full-employment output level, Y1. The short-run impact of the Fed unexpectedly shifting to a more restrictive monetary policy will be
a.
a decrease in aggregate demand to AD2 and a decrease in real output to Y2.
b.
a decrease in aggregate demand to AD2 but real output would remain at Y1.
c.
a decrease in aggregate demand to AD2 and an increase in short-run aggregate supply to SRAS2, causing the price level to fall to P3 and real output to remain unchanged at Y1.
d.
no change; AD and SRAS will stay at AD1 and SRAS1.