Heuristics:
A. are rules of thumb that generate decisions that generally maximize net benefits.
B. take a long time to develop and are therefore avoided by rational decision makers.
C. are shortcuts that save time and energy in decision making.
D. always waste mental resources by leading people to suboptimal outcomes.
Answer: C
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Refer to Figure 17-9. A follower of the new classical macroeconomics would argue that ________ like that pursued by Paul Volcker in 1979, would result in a movement from C to A
A) expansionary fiscal policy B) expansionary monetary policy C) contractionary monetary policy D) contractionary fiscal policy
A higher domestic price level lowers aggregate expenditures and, therefore, shifts the aggregate demand curve to the left
a. True b. False Indicate whether the statement is true or false
The definition of monopolistic competition differs from that of perfect competition with respect to _______________.
Fill in the blank(s) with the appropriate word(s).
For a monopolist, the price of the product:
A. is less than the marginal revenue. B. exceeds the marginal revenue. C. equals the marginal cost. D. equals the marginal revenue.