If the government enacts contractionary fiscal policy, it:
A. must want to slow economic activity.
B. could increase taxes.
C. expects aggregate demand to decrease.
D. All of these are true.
D. All of these are true.
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When a monopolist maximizes its profit by selling a positive amount:
A. its marginal revenue must equal its marginal cost at that quantity. B. its marginal revenue must exceed its marginal cost at that quantity. C. its marginal revenue must be less than its marginal cost at that quantity. D. its marginal revenue must be equal to zero.
Total revenue can be defined as:
A. the total amount a firm spends on all inputs used in production. B. the amount that a firm spends on all inputs that go into making a good or service. C. the amount that a firm receives from the sale of goods and services. D. the total number of sales of a good or service by a firm.
Will a profit-maximizing monopolist who is not subject to government regulation produce a quantity where the MR < 0?
What will be an ideal response?
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward