Compared to an elastic supply curve, an inelastic supply curve tends to ______.
a. have a flatter slope
b. have a steeper slope
c. run parallel to demand
d. stretch out deadweight loss
b. have a steeper slope
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Explain what the principal-agent problem is, and explain evidence of its existence in hospitals in the United States
What will be an ideal response?
The Great Depression was an era marked by
a. steady growth in GDP and a decline in the rate of unemployment. b. a prolonged period of high unemployment and output substantially below its potential. c. a large decline in the stock market followed by a steady recovery. d. a failure of expansionary monetary policy to stimulate output and employment.
Which of the following is most likely to be an unintended effect of placing safety caps on medicines?
A) It is now harder for people to open their medicine containers. B) People leave their medicine containers open more often, which ends up making it easier for children to get into the medicine. C) Fewer people get sick and need medicine. D) Medicine prices fall sharply.
Suppose the intersection of the IS and LM curves is to the right of the FE line. What would most likely eliminate a disequilibrium among the asset, labor, and goods markets?
A) A rise in the price level, shifting the LM curve up and to the left. B) A fall in the price level, shifting the LM curve down and to the right. C) A rise in the price level, shifting the IS curve up and to the right. D) A fall in the price level, shifting the IS curve down and to the left.