Externalities are created when parties not involved in an economic transaction are affected by it
a. True
b. False
Indicate whether the statement is true or false
True
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Under the rational expectations hypothesis, if wages adjust rapidly to new information about intended policy actions, the only time that changes in government policies have real effects is when
A) the changes are unanticipated. B) the changes involve monetary policy. C) the changes involve fiscal policy. D) the changes affect aggregate demand.
Refer to the figure above. What is the equilibrium employment if the labor demand curve is LD1 and the labor supply curve is LS1?
A) 5 units B) 20 units C) 15 units D) 10 units
In the short run, we assume that the number of firms in a perfectly competitive market:
A. varies if perfect information is present. B. varies more than the long-run equilibrium. C. is fixed. D. is equal to the number of firms in the long-run.
Between 1775 and 1780, $242 million of Continental Notes were printed. As the quantity of the Continentals multiplied,
a. the demand for these notes multiplied as well b. their value depreciated c. their value appreciated d. banks on the European continent intervened to stabilize the value of the Continental notes e. silver and gold became less valuable