Which of the following is the correct expression for short-run aggregate supply in the new classical view?
A) YP = Y + a(P - )
B) Y = YP + a(P - )
C) YP = Y + a(P + )
D) Y = YP + a(P + )
B
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Which of the following is the BEST example of a private good?
A) a can of Mountain Dew B) fish in the ocean C) cable television D) national defense
An investor who bases the decision to buy an asset solely on the expected return of an asset is considered to be:
A) risk loving B) risk averse C) risk neutral D) risk avoiding
Which of the following is a valid reason for government provision rather than market provision of certain economic goods and services?
a. When the government provides economic goods, they are free; costs are only incurred when such goods are provided by private firms. b. Voters tend to be better informed than market consumers. c. Decision makers in the market are motivated by self-interest, whereas, political decision makers are primarily motivated by the desire to help others. d. Public goods tend to be undersupplied through the market since it is difficult for potential suppliers to withhold such goods from nonpaying consumers, while the government can use taxes to overcome this problem.
Figure 10-7
Refer to Figure 10-7. Which of the diagrams in Figure 10-7 represents a period of economic growth and inflation?
a.
Panel (A)
b.
Panel (B)
c.
Panel (C)
d.
Panel (D)