The classical model predicts the real GDP will always be
a. rising.
b. falling.
c. equal to its full-employment level.
d. constant.
e. equal to its full-taxation level.
C
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Which of the following describes a difference between the marginal revenue and demand curves of a perfectly competitive firm and a monopolistically competitive firm?
A) The marginal revenue curve of a monopolistically competitive firm lies below its demand curve; the marginal revenue curve of a perfectly competitive firm lies above its demand curve. B) The perfectly competitive firm's marginal revenue and demand curves are the same; the marginal revenue curve of a monopolistically competitive firm lies below its demand curve. C) The monopolistically competitive firm's marginal revenue and demand curves are the same; the marginal revenue curve of a perfectly competitive firm lies below its demand curve. D) The perfectly competitive firm's marginal revenue and demand curves are the same; the marginal revenue curve of a monopolistically competitive firm lies above its demand curve.
When the minimum marginal penalty for tax evasion is greater than the maximum marginal tax rate, theory suggests that tax evasion will be
A. greater than 1. B. ?. C. 0. D. 100.
The above table shows the short-run production function for Albert's Pretzels. The marginal product of labor for the third worker is
A) 6. B) 8. C) 24. D) not known from the information provided.
As interest rates rise, banks seek to decrease their loans and, thereby, shrink the money supply
a. True b. False Indicate whether the statement is true or false