A monopoly earns the most profit by charging a price where demand is inelastic
a. True
b. False
Indicate whether the statement is true or false
False
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In 1963, government economists assumed that the MPC for the United States was approximately 0.90. If taxes were cut by $9 billion, then consumer expenditures would initially be expected to
A. decrease by $9.0 billion. B. increase by $9.0 billion. C. decrease by $8.1 billion. D. increase by $8.1 billion.
According to this Application, the prices which were tracked in the retail catalogs exemplified the macroeconomic concept of the short run, a period of time in which
A) prices change frequently because of changes in aggregate supply. B) prices don't change very much, implying that the aggregate supply curve is relatively flat. C) prices never change because the aggregate demand curve is vertical. D) price changes are significant because the aggregate supply curve is vertical.
Which of the following serve as the language of the market system?
a. Monetary and fiscal policies b. Volatility c. Market prices d. Lawsuits
Governments have learned that a(n)
a. increased budget deficit tends to reduce interest rates and increase investment, thus increasing the growth of the capital stock b. reduced budget deficit tends to reduce interest rates and increase investment, thus increasing the growth of the capital stock c. reduced budget deficit tends to increase interest rates and increase investment, thus increasing the growth of the capital stock d. reduced budget deficit tends to increase interest rates and increase investment, thus reducing the growth of the capital stock e. increased budget deficit tends to increase interest rates and increase investment, thus reducing the growth of the capital stock