New classical economists say that a fully anticipated decrease in aggregate demand:
A. shifts the long-run aggregate supply curve to the right.
B. shifts the long-run aggregate supply curve to the left.
C. moves the economy down along its vertical long-run aggregate supply curve.
D. eventually results in a self-correcting increase in aggregate demand.
C. moves the economy down along its vertical long-run aggregate supply curve.
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Which of the following is a question answered with normative economic reasoning?
A) If the college provided less financial aid for out-of-state students, would more in-state students benefit? B) If the college offers free textbooks for students, will more students read their textbooks? C) If the college increased its enrollment requirements, would class size decline? D) Should the college increase tuition to fund its athletic programs?
The above table shows production combinations on a country's production possibilities frontier. A movement from ________ involves the greatest opportunity cost of increasing the production of good Y
A) point E to point D B) point D to point C C) point C to point B D) point B to point A
Which of the following would not act as an automatic stabilizer?
A) Unemployment insurance B) Government purchases C) Personal income taxes D) Corporate income taxes
The risk-shifting problem tends to be __________ for __________ firms than for __________ firms
A) greater; small; large B) greater; large; small C) the same; large; small D) None of the above.