Countercyclical policy
What will be an ideal response?
fiscal policy in which taxes are lowered
and expenditure is raised when the
economy is weak, and the opposite occurs when the economy is strong
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In the figure above, suppose the market is at equilibrium. Then area A is the
A) marginal benefit. B) marginal cost. C) amount of the consumer surplus. D) amount of the producer surplus. E) deadweight loss.
A determinant of the price elasticity of supply is the extent to which
A) consumers like the quality of the good. B) the demand for the good is relatively elastic. C) the good has many consumer substitutes. D) production of the good uses commonly available resources.
Compared to perfect competition, monopoly in the long run?
a. Restricts outputs b. Changes a higher price. c. Produces at greater than the minimum average total cost. d. Is able to make greater profits. e. All of the above.
When the money market is drawn with the value of money on the vertical axis, the price level increases if
a. money demand shifts right and decreases if money supply shifts right. b. money demand shifts right and decreases if money supply shifts left. c. money demand shifts left and decreases if money supply shifts right. d. money demand shifts left and decreases if money supply shifts left.