The most likely explanation of the recession of 1981-1982 was
A) an increase in energy prices.
B) a collapse in investment spending.
C) that it was an unfortunate byproduct of a decrease in inflation.
D) a dramatic decrease in stock prices.
C
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In the classical model, a change in aggregate demand
A) causes changes in both the long-run real GDP and in the price level. B) causes a change in long-run real GDP but not in the price level. C) causes a change in the price level but not in the long-run real GDP. D) has no effect on either real GDP or the price level.
If the net benefit of Project A is $10 and that of Project B is $12, which of the following statements is true?
A) An individual can optimize by choosing Project B. B) Switching from Project A to Project B reduces the net benefit by $2. C) An individual can optimize by choosing Project A. D) Switching from Project A to Project B increases the net benefit by $1.2.
Which of the following provides the best explanation for diseconomies of scale?
A. Reduced monitoring costs B. The presence of fixed inputs C. Indivisible setup costs D. Loss of team spirit
One of the external costs associated with illegal methamphetamine production is the
A. increased difficulty illegal methamphetamine producers face in obtaining their ingredients. B. increased difficulty of purchasing some over-the-counter cold medications. C. increased difficulty of purchasing some over-the-counter cold medications as well as a substitution of somewhat less effective ingredients in some over-the-counter cold medications. D. substitution of somewhat less effective ingredients in some over-the-counter cold medications.