If the Congress passes legislation to cut taxes to counter the effects of a severe recession, then this would be an example of a:
a. Nondiscretionary fiscal policy
b. Contractionary fiscal policy
c. Political business cycle
d. Expansionary fiscal policy
d. Expansionary fiscal policy
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If regulators disallow price increases requested by a natural monopoly that is currently earning an economic loss, quality of service will
A) increase rapidly. B) likely fall. C) remain unchanged. D) none of the above.
Which statement about oligopoly is false?
A. Prices in oligopoly are predicted to fluctuate widely and frequently. B. One firm's behavior is a function of what its rivals do. C. Oligopolistic firms recognize their interdependence. D. A few firms play an important role in the sale of a product.
The labor demand curve shows how many workers the firm is willing to hire
A. at any particular time. B. at a particular amount of labor supplied. C. at any given wage. D. when demand for the firm's output is low. E. into high-skill jobs.
Use the following graph, which shows an aggregate demand, to answer the next question.
If the economy is at point C and the price level increases by 100, then the real balances, interest-rate, and foreign purchases effects will ________.
A. shift the AD curve to the left B. move the economy to point A C. move the economy to point B D. move the economy to point D