New classical economists contend that both the short-run and long-run aggregate supply curves are vertical
a. True
b. False
Indicate whether the statement is true or false
False
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If transactions costs are low, then assigning property rights in a market with external costs
i. increases the deadweight loss. ii. means private transactions are efficient. iii. means that only consumers must pay the external costs. A) i only B) ii only C) ii and iii D) i and iii E) i and ii
Reported GDP increases when, in fact, total production is unchanged when I. there is a shift from household production to market production. II. a previously illegal activity is legalized
A) I only B) II only C) neither I nor II D) both I and II
With free entry
A) economic profits are possible over the long run. B) economic profits are possible but only over limited amounts of time. C) economic profits are not possible. D) the cost of capital will not be covered.
Describe three of the ways that the U.S. federal government responded to the financial crisis of 2007-2009 and to the resulting problems in the real sector of the economy. Be sure to include in your answer the government's specific intent in each of these actions