Other things equal, an increase in the general price level causes the money demand function to shift to the left
a. True
b. False
Indicate whether the statement is true or false
False
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The figure above shows the marginal social cost of generating electricity and the marginal private cost. For 4 billion kilowatts, what is the marginal external cost?
A) $0.12 B) $0.08 C) $0.04 D) $0.00 E) $0.20
John Maynard Keynes and his followers argued that
a. the classical model does a good job of explaining the economy's operation in both the short run and long run b. the short run is unimportant so economists should focus their attention on the long run c. the economy should be allowed to function with minimal government interference d. the economy operates the same way in both the short run and long run e. while the classical model might explain economic performance in the long run, the long run could take a long time to reach
Which of the following markets impose deadweight losses on society? (i) perfect competition (ii) monopolistic competition (iii) monopoly
a. (i) and (ii) only b. (ii) and (iii) only c. (i) and (iii) only d. (i) only
Which of the following causes stagflation?
A. Wage increases equal productivity increases, thereby setting off inflation. B. A leftward shift in the aggregate demand curve. C. Workers push costs upward and thereby initiate inflation. D. A leftward shift in the aggregate supply curve.