If the Ricardo-Barro effect is present, a government budget deficit raises the equilibrium real interest rate by ________ and decreases the equilibrium quantity of investment by ________ than if the Ricardo-Barro effect is absent
A) more; more
B) more; less
C) less; more
D) less; less
D
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In the long-run equilibrium, perfectly competitive firms make zero economic profit because of
A) government regulations. B) the ability of firms to enter and exit. C) inefficient production processes. D) high fixed costs.
Countries in which the government does not regulate the labor market are likely to have ________ sacrifice ratio
A) an infinite B) a high C) a low D) a negative
In order to determine if a hypothesis is valid we must utilize a. qualitative analysis. b. empirical analysis
c. marginal analysis. d. average analysis.
Institutional constraints, such as immigration policies, affect the shape and location of the labor supply curve.
Answer the following statement true (T) or false (F)