In the extreme case of a complete crowding-out effect
A) an increase in interest rates will stimulate investment spending.
B) an increase in government spending will not increase aggregate demand.
C) an increase in tax rates will stimulate work effort.
D) an increase in government spending will stimulate investment spending.
B
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In the long run, the firm ________ change the number of workers it employs and ________ change the size of its plant.
A) can; can B) can; cannot C) cannot; can D) cannot; cannot E) In order to answer the question, more information is needed about how long the long run is.
One of the limitation of Five Forces is that they
a. Reduce producer surplus b. For one firm to increase profit, the profit of another participant must decrease c. Does not provide a firm with sustainable competitive advantage d. Both b and c
Refer to Figure 18.2. The sale of bonds by the Fed in the open market will result in
A. An increase in the money supply and a move from AS1 to AS2. B. A decrease in the money supply and a move from AD2 to AD1. C. An increase in the money supply and a move from AD1 to AD2. D. A decrease in the money supply and a move from AS2 to AS1.
An increase in short-run aggregate supply shifts the curve ______.
a. from SRAS2 to SRAS1
b. from LRAS2 to SRAS1
c. from SRAS1 to LRAS1
d. from SRAS1 to SRAS2