According to new classical economists,
a. deficits should have a large and negative impact on output.
b. deficits should have no discernable impact on output.
c. deficits will have no impact on private consumption.
d. growth in the 1990s was driven by falls in the deficit.
e. None of the above
B
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In the above figure, which wage rate yields the highest union employment?
A) W1 B) W2 C) W3 D) W2 - W1
In the monetarist view, the money supply affects the economy
A. through investment spending and government spending. B. indirectly through interest rates. C. directly, apart from interest rates. D. by altering the size of the money multiplier.
The "primary motive" of regulators, according to the share-the-gains, share-the-pains theory, is to
A. keep their jobs. B. ensure that every group gets what it wants. C. maximize their income through accepting monetary payoffs from groups. D. ensure that all customers share the benefits of regulation, and not just the wealthiest consumers.
A monopolistic ally competitive firm is producing at a short-run output level where average total cost is $10.00, marginal cost is $5.00, marginal revenue is $6.00, and price is $12.00. In the short run, the firm should:
A. Decrease the level of output B. Increase the level of output C. Make no change in the level of output D. Increase product price