The 1990-91 recession was caused by a Federal Reserve policy change designed to minimize the adverse economic effects of the Gulf War
a. True
b. False
B
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An increase in currency held outside the banks is ________
A) a currency drain B) income C) a currency surplus D) wealth
A tax on candy will be paid by ______
A. only buyers if the demand for candy is inelastic B. only sellers if the supply for candy is inelastic C. buyers and sellers if the demand for candy is elastic D. only buyers if the supply of candy is elastic
Answer the following statements true (T) or false (F)
1. In the long run, under conditions of perfect competition, economic profits are eventually eliminated. 2. If the entry of new firms substantially raises demand for resources, two forces tend to eliminate economic profit in the long run: upward pressure on cost and downward pressure on price. 3. The more that firms advertise, the closer they get to perfect competition. 4. The lowest possible ATC curve is attained at the optimal scale of output. 5. If price equals marginal cost at the long-run equilibrium, this means that economic efficiency is being achieved.
If the government decreases spending and taxes by 1,000 units and the marginal propensity to consume is .9, then
a. more information is needed. b. output will decrease by 900. c. output will decrease by 10,000. d. output will increase by 10,000.