Excessive government spending can cause demand-pull inflation
a. True
b. False
Indicate whether the statement is true or false
True
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In the long run, monopolistically competitive firms make zero economic profits because of government regulations
Indicate whether the statement is true or false
Mutual funds are primarily held by
A) financial institutions. B) households. C) nonfinancial businesses. D) the Social Security trust fund.
The effect of a tariff or a quota is to
a. raise the price of a commodity in the exporting country above the price in an importing country. b. raise the price of a commodity in an importing country above the price in the exporting country. c. lower the price of the commodity in all countries. d. raise the price of the commodity in all countries.
What will actual unemployment be (in relation to the natural rate) in each of the following cases? Use a graph of the modern Phillips curve in your answer
a. Decision makers underestimate inflation. b. Decision makers overestimate inflation. c. Decision makers correctly forecast inflation.