Which of the following is not a valid criticism of discretionary fiscal policy?
a. The implementation of fiscal policy is sometimes difficult
b. Time lags in fiscal policy are long.
c. Fiscal policy works only during periods of stagflation.
d. Fiscal policy often affects only current income, but many economic decisions are made on the basis of permanent income.
e. Fiscal policy might have undesirable long-term effects on aggregate supply.
c
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Assume that the demand curve for DVD players shifts to the left and the supply curve for DVD players shifts to the right, but the supply curve shifts less than the demand curve. As a result,
A) both the equilibrium price and quantity of DVD players will decrease. B) the equilibrium price of DVD players will decrease; the equilibrium quantity may increase or decrease. C) the equilibrium price of DVD players may increase or decrease; the equilibrium quantity will increase. D) the equilibrium price of DVD players will decrease; the equilibrium quantity will increase.
The BP curve presents combinations of y and i that yield balance of trade equilibrium
Indicate whether the statement is true or false
A company X is unlikely to disclose its organizational chart to its competitor company Y to prevent leak of important strategic information about itself
Indicate whether the statement is true or false
In Figure 12-1, for a monopolistically competitive firm, long-run equilibrium can occur only at the quantity indicated by which point?
a. A
b. B
c. C
d. D