The monetarists would expect a tax cut to have a strong effect on output only if the spending increase was
a. financed by a sale of bonds.
b. financed by a cut in government spending.
c. financed by an increase in the money stock.
d. accompanied by a reduction in the deficit.
C
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The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
Suppose your utility function is given by 
. What is your demand function for 
?
What will be an ideal response?
What is the main reason for anti-trust laws?
a. To keep prices low b. To ensure firms do not become too big c. To ensure active competition d. To prevent mergers
If all firms had to bear all the social costs of their actions, we should observe marginal cost curves
A. of all firms shifting up. B. of some firms shifting up and of the rest shifting down. C. of all firms that had generated externalities shifting up while there would be no change for the rest of the firms. D. of some firms shifting up, of some others shifting down, and of the rest not shifting at all.