The point at which the aggregate expenditure line intersects the vertical axis is determined by the marginal propensity to consume and real interest rate
a. True
b. False
Indicate whether the statement is true or false
False
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Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
Answer the following statement(s) true (T) or false (F)
1.Producer surplus is the difference between the highest price a consumer is willing to pay for a product and the revenues the supplier receives for it. 2.Free trade might increase the prices paid by domestic consumers, but this negative effect is offset by gains experienced by producers. 3.Through free trade, wealth is sometimes redistributed from producers to consumers. 4.When a country exports a good, domestic consumers are negatively affected. 5.Imports hurt domestic consumers, but the losses are offset by producer gains.
The Sherman Act was designed to:
A. exempt commercial banks from the antitrust laws. B. make interlocking directorates legal. C. prohibit misleading and antisocial advertising. D. make monopoly and acts that restrain trade illegal.
The analytical framework in which two or more firms compete for certain payoffs that depend on the strategy that the others employ is
A. a horizontal merger. B. the concentration ratio. C. game theory. D. network effect.