When supply-side policy is successful in pushing up equilibrium real Gross Domestic Product (GDP), the reason is that the policy generates
A) a decrease in aggregate demand.
B) an increase in aggregate supply.
C) a decrease in employment.
D) a decrease in saving.
B
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When Starbucks accepts your $10 bill for two Grande Lattes and one Tall Caramel Macchiato, the $10 bill serves as a
A) medium of exchange. B) store of value. C) standard of value. D) commodity money.
Assume a firm produces 500 units of a good by using two inputs, capital and labor, whose per unit prices are $10 and $4
Assume also that the marginal physical product of the last unit of capital is 30 and the marginal physical product of the last unit of labor is 10. Is this firm minimizing its costs of producing 500 units of output? A) No, because the marginal products of the two inputs are not equal. B) No, because the MRTS and the price ratio for the two inputs are not equal. C) No, because the prices of the two inputs are not equal. D) The answer cannot be determined without more information.
Four companies dominate the market for robotic lawn mowers. Each company takes a different action. Which action is most likely to present a barrier to potential entrants to the industry?
a. Firm A obtains a patent on the technology it uses in its robots. b. Firm B discovers a cost-saving process that also speeds production. c. Firm C becomes the price leader in the industry and raises its prices. d. Firm D uses game theory strategies to predict the actions of its rivals.
Which one of the following is an example of asymmetric information?
A. A supermarket repackages packages of stale meat and sells them. B. A homeowner knowingly sells a house that has hidden electrical problems. C. A company hires an employee who has an addiction to sleeping pills. D. All of these