Government intervention always reduces monopoly deadweight loss
a. True
b. False
Indicate whether the statement is true or false
False
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Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
Economic agents who borrow funds are known as:
A) receivers. B) debtors. C) investors. D) creditors.
Which of the following best describes a flow rather than a stock? a. You own $5,000 worth of government bonds. b. You own a $100,000 house
c. You own a coin collection valued at $10,000. d. You earn $500 per week. e. You own a $45,000 automobile.
The dynamic aggregate demand curve has a negative slope for all of the following reasons except:
A. the fact that high rates of inflation are good for the stock market. B. the reduction in real wealth caused by inflation. C. the redistribution that occurs as inflation has a greater impact on the poor than it does on the wealthy. D. higher current inflation leads policymakers to increase the real interest rate, which depresses various components of aggregate expenditures.