According to the Lucas supply function, in combination with the assumption that expectations are rational, change in government policy can affect real output only if
A. the policy change is a mix of both fiscal and monetary policy changes.
B. expansionary policy changes are made.
C. the policy change is correctly anticipated by the public.
D. the policy change is a surprise.
Answer: D
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If Mike earns $80,000 this year and pays $16,000 in taxes and David earns $50,000 this year and pays $11,000 in taxes, this tax system would appear to be a. progressive
b. proportional. c. regressive. d. none of the above
____ occur when an X percent increase in input use raises output by more than X percent, so that the more the firm produces, the lower its per-unit costs become
a. Economies of scope b. Scale economies c. Product differentiation d. Perfect competition
The most desirable combination of output attainable with existing resources, technology, and social values is known as the
A. Attainable mix of output. B. Efficient mix of output. C. Efficient choice of production. D. Optimal mix of output.
Which of the following is a nominal quantity?
A. The amount of coal mined in one month B. The current price of a barrel of oil C. The number of people unemployed D. The number of cars produced in 2005