To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change.
B. increase.
C. decrease.
D. either increase or decrease depending on the relative shifts of AD and AS.
Answer: C
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Suppose that a disease that affects people who consume beef has been discovered in the United States. One likely result is:
A. an increase in buyers' reservation prices for beef. B. a decrease in demand for beef. C. a decrease in demand for chicken. D. a decrease in the quantity demanded of beef.
If everyone has a dominant strategy, there can be no mixed strategy equilibrium.
Answer the following statement true (T) or false (F)
A good is said to have an elastic supply if its price elasticity of supply is:
A) equal to zero. B) between zero and one. C) equal to one. D) greater than one.
Which of the following are reasons for the increased centralization in school financing?
a. The existence of diseconomies of scale in education. b. A desire by state education agencies to decentralize control. c. A desire to equalize funding across school districts. d. Increasing positive externalities from education as globalization increases.