The fact that some resource prices are fixed by contracts helps explain why firms _____
Fill in the blank(s) with the appropriate word(s).
increase output in the short run when the price level increases.
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Which school of economics held that individuals and business firms learn, through experience, to instantaneously anticipate the consequences of changes in monetary and fiscal policy?
A. The Keynesians B. The monetarists C. The supply-siders D. The rational expectationists
If an agent is risk neutral and a principal is risk averse, which of the following contracts would be efficient in risk bearing?
A) A fixed fee is paid to the agent. B) A fixed fee is paid to the principal. C) An hourly rate is paid to the agent. D) The agent enjoys a share of the profit.
A common tool for restricting trade through quantity is:
A. international waters use policies. B. immigration restrictions. C. import quota. D. a tariff.
Economic growth, as measured by increases in real GDP per-capita, was at its weakest during the
A. 1990s. B. 1980s. C. 2000s and 2010s. D. 1970s.