Classical economists believe that in the short run
A) money neutrality exists and prices adjust rapidly.
B) money neutrality does not exist and prices adjust rapidly.
C) money neutrality exists and prices do not adjust rapidly.
D) money neutrality does not exist and prices do not adjust rapidly.
A
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The winners from a Japanese tariff on imported cars are I. Japanese car producers. II. Japanese car consumers. III. the Japanese government
A) only I and III B) only I C) only II D) I, II, and III
Refer to Table 8.1. That the firm is perfectly competitive is evident from its
A) increasing marginal cost. B) increasing total cost. C) zero economic profits. D) constant marginal revenue. E) absence of marginal values at Q = 0.
Whether studying the output of the U.S. economy or how many classes a student will take, a unifying concept is that:
A. both wants and resources are unlimited, so trade-offs are unnecessary. B. wants are unlimited and resources are scarce, so trade-offs have to be made. C. wants are limited and resources are unlimited, so trade-offs are unnecessary. D. wants are limited and resources are unlimited, so trade-offs have to be made.
Taxes and needs-tested spending work as automatic fiscal policy to dampen the business cycle because taxes _______ during an expansion, and needs-tested spending _______ during a recession.
Fill in the blank(s) with the appropriate word(s).