Which of the following government policies ensures market efficiency?
A) subsidy
B) tax
C) price regulations
D) quantity regulations
E) None of the above answers is correct.
E
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In the above figure, the second ton of wheat would be produced even though the producer surplus on it is zero if the price per ton of wheat was
A) $25. B) $50. C) $75. D) $100.
Which of the following changes shifts the SRAS curve down?
A) An increase in the labor force B) An increase in the money supply C) A decrease in government purchases D) A decrease in firms' costs
The actual government budget deficit ________ be used to determine the effectiveness of discretionary fiscal policy actions because ________
A) cannot; it excludes non-discretionary spending changes B) can; it includes non-discretionary spending changes C) cannot; it includes non-discretionary spending changes D) can; it excludes automatic stabilization expenditures
If the demand for money decreases, but the Fed keeps the money supply the same:
a. nominal interest rates will rise and aggregate demand will fall. b. nominal interest rates will rise and aggregate demand will rise. c. nominal interest rates will fall and aggregate demand will fall. d. nominal interest rates will fall and aggregate demand will rise.