The proposition that policy actions have no real effects in the short run if the policy actions are anticipated is known as
A) the policy irrelevance proposition. B) the Keynesian proposition.
C) the inflation stabilization proposition. D) the unemployment stabilization proposition.
A
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A decrease in the demand for eggs results in a surplus of eggs at the original equilibrium price. Explain how market forces will act to eliminate the surplus
What will be an ideal response?
Your neighbor likes to blast 1970's rock music and the louder the better. The loud music imposes a cost on you because it disrupts your study of economics. Let D stand for the volume of his music in decibels, B for his benefits and C for your costs, where B and C are measured in dollars. For any given volume, D, your neighbor's benefit is B = 0.63D - 0.002D2 and your cost is C = 0.06D + 0.001D2. With an efficient Pigouvian tax, what noise level will your neighbor choose?
A. 90 decibels B. 95 decibels C. 115 decibels D. 345 decibels
An economy that grows too slowly fails to raise living standards
Indicate whether the statement is true or false
Given the information in Scenario 14.1, how much labor will be hired to maximize profit?
A) 1/16 B) 1/2 C) 1 D) 4