Refer to the information provided in Figure 32.2 below to answer the question(s) that follow.
Figure 32.2Refer to Figure 32.2. According to monetarists, an expansionary fiscal policy in the long run and after all the adjustments have been made
A. increases the price level above P1, but does not change equilibrium output.
B. increases equilibrium output above Y1 and decreases the price level below P1.
C. does not increase equilibrium output or the price level.
D. increases equilibrium output above Y1, but does not change the price level.
Answer: A
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A) raise the required reserve ratio. B) buy Treasury securities. C) raise the discount rate. D) lower bank taxes.
Hospitals typically include all their sunk costs when deciding how much it costs them to provide services because
A) each patient benefits from the hospital's being adequately equipped. B) hospital administrators have no incentive to be efficient. C) no hospital could continue operating if it wasn't able to cover its sunk costs. D) the payments they receive are largely based on what they say are their costs. E) they are non-profit institutions and hence are in general poorly managed.
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Indicate whether the statement is true or false
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