Recent research by Keynesians and classicals has led to
A) a reconciliation of the types of models they use.
B) the recognition by classical economists that prices adjust very slowly.
C) convincing evidence that TFP shocks are the dominant force affecting the business cycle.
D) the refutation of the efficiency wage model.
A
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The Fed decreases the quantity of money to counteract
A) positive net exports. B) a federal budget deficit. C) a rise in the unemployment rate. D) a recessionary ga
Every society faces economic trade-offs. This means
A) some people live better than others do. B) not everyone can have enough goods to survive. C) producing more of one good means less of another good can be produced. D) society's output cannot be made available to all.
A perfectly competitive industry consists of firms that produce ________ products.
A. unique B. slightly differentiated C. identical D. significantly differentiated
At its present rate of output, 200 units, a perfectly competitive firm has total cost of $10,000 . marginal cost of $38, and fixed cost of $2,000 . and it charges the market price of $38 per unit. To maximize profit or minimize loss, this firm should
a. increase output b. reduce output but not to zero c. maintain the present rate of output d. shut down e. raise the price