What is the reason that stabilization policies do NOT have an immediate effect on an economy?
A. Consumers are slow to catch up on spending.
B. There is a time lag for policies to take effect.
C. Imports come into the country too fast.
D. Exports often are not shipped fast enough.
Answer: B
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The aggregate expenditure model focuses on the short-run relationship between ________ and ________
A) unemployment; inflation B) planned inventories; unplanned inventories C) real spending; real GDP D) nominal spending; nominal GDP
If a company has significant economies of scale in the long run-assuming a large market -the company will tend to
A. grow larger and have a rising average cost curve. B. become smaller and have a rising average cost curve. C. become smaller and have a declining average cost curve. D. grow larger and have a declining average cost curve.
Perfectly competitive firms that earn an economic profit in the short run choose the output that
a. maximizes total revenue b. minimizes total cost c. maximizes the difference between total revenue and total cost d. maximizes the difference between total revenue and explicit cost e. maximizes the difference between total revenue and implicit cost
Emissions permits might be called an allowance.
Answer the following statement true (T) or false (F)