Which of the following changes shifts the SRAS curve up?
A. An increase in firms' costs
B. A decrease in government purchases
C. An increase in the labor force
D. An increase in the money supply
Answer: A
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Why has the federal government generally run budget deficits over the past several decades?
A) Political pressures make expenditures hard to control. B) The federal government's control of the money supply enables it to borrow indefinitely without becoming unable to find creditors. C) The public has accepted the notion that budget deficits can be good for the economy. D) A combination of the three factors mentioned above.
Are the short-run and long-run average cost curves U-shaped for the same reason? Explain
What will be an ideal response?
The difference between a corrective tax and a tradable pollution permit is that
a. a corrective tax sets the price of pollution and a permit sets the quantity of pollution. b. a corrective tax creates a more efficient outcome than a permit. c. a corrective tax sets the quantity of pollution and a permit sets the price of pollution. d. a permit creates a more efficient outcome than a corrective tax.
It is correct to state that a society which is on its production possibilities curve is
A) underutilizing is resources. B) technologically inefficient. C) consuming too much output. D) fully utilizing its productive resources.