According to your authors, the "boom-bust" cycle is primarily caused by
A) government tax and spend policies.
B) an artificial lowering of interest rates through expansionary monetary policy.
C) waves of irrational optimism and pessimism in the business community.
D) a clash of interests among capitalists and laborers.
B
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Refer to Figure 12-17. The graphs depicts a short-run equilibrium. How will this differ from the long-run equilibrium? (Assume this is a constant-cost industry.)
A) The price will be higher in the long run than in the short run. B) The market supply curve will be further to the left in the long run than in the short run. C) The firm's profit will be lower in the long run than in the short run. D) Fewer firms will be in the market in the long run than in the short run.
For a monopolist, the marginal revenue gained when one more unit of output is sold is
A) the price at which the extra unit is sold minus the loss in revenue that results from cutting the price on units sold previously. B) equal to the price of the product. C) negative if price is above the midpoint of the demand curve. D) the average revenue created by the increased sales.
What is the opportunity cost of unemployment for an economy? What social problems have been linked to higher rates of unemployment?
What will be an ideal response?
A tax on imports is a(n)
A. tariff. B. quality barrier. C. import quota. D. voluntary import restriction.