A temporary decrease in government purchases in the classical model would
A) shift the production function to the left.
B) shift the marginal product of labor curve to the right.
C) shift the labor demand curve to the left.
D) shift the labor supply curve to the left.
D
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High tariffs on intermediate inputs
A) increase the effective rate of protection on final goods. B) have no impact on the effective rate of protection on final goods. C) decrease the effective rate of protection on final goods. D) lower the nominal rate of protection on final goods. E) raise the nominal rate of protection on final goods.
Using the Keynesian model, the effect of a decrease in the effective tax rate on capital would be to cause ________ in the real interest rate and ________ in output in the long run
A) an increase; no change B) a decrease; no change C) an increase; an increase D) no change; a decrease
According to the rational expectation view, the government can change real output:
a. with appropriate, well-publicized fiscal and monetary policies b. with appropriate, well-publicized fiscal and monetary policies in the short run, but not in the long run. c. only by making unexpected changes in aggregate demand. d. without ever affecting the price level.
Bartech, Inc. is a firm operating in a competitive market. The manager of Bartech forecasts product price to be $28 in 2015. Bartech's average variable cost function is estimated to beAVC = 10 ? 0.003Q + 0.0000005Q2Bartech expects to face fixed costs of $12,000 in 2015. At what level of output will Bartech's average variable cost reach its minimum value?
A. 3,000 units B. 2,000 units C. 4,000 units D. 6,000 units E. 5,000 units