In the long-run the ISLM model predicts that ________ can change real output
A) only monetary policy
B) only fiscal policy
C) both monetary and fiscal policy
D) neither monetary nor fiscal policy
D
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In an attempt to limit the supply of illegal liquor, the Russian government has restricted sugar availability (sugar is used to increase alcohol content). Russians also like to sweeten their tea with jam, another product made using sugar. Which graph in Figure 4-11 depicts the impact of sugar rationing on the Russian tea market?
A. 1 B. 2 C. 3 D. 4
Which of the following statements is true?
A) In any game, the best response of a player is also her dominant strategy. B) The best response of a player is not always her dominant strategy. C) A prisoners' dilemma game is an example of a zero-sum game. D) A prisoners' dilemma game is an example of an extensive-form game.
Suppose the government reduces its budget deficit at the same time that energy prices rise sharply. Which of the following is most likely to happen?
a. The price level will rise, since higher energy prices increase the cost of production b. Real GDP will fall since both events will tend to cause an economic contraction. c. The price level will fall because the aggregate demand curve has shifted leftward. d. Real GDP will rise as less government spending leads to more opportunities for the private sector. e. Both the price level and real GDP will fall.
A variable factor of production:
A. plays no role in the law of diminishing marginal returns. B. is variable only in the short run. C. is fixed in the long run but variable in the short run. D. is variable in both the short run and the long run.