Which of the following examples would be most effective in the flat part of the SRAS demand curve?
a. The Fed begins an aggressive expansionary policy.
b. The Fed keeps the monetary policy neutral.
c. The Fed implements a slight contractionary policy.
d. The Fed implements an aggressive contractionary policy.
a. The Fed begins an aggressive expansionary policy.
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On January 2, 1971, all cigarette advertising was banned on U.S. television and radio stations. Did this ban likely increase or decrease the profits of cigarette companies in 1971? Briefly explain
What will be an ideal response?
It is argued that the market will
A. not produce a nonexcludable public good. B. produce the socially optimal output of a nonexcludable public good. C. produce too much of a nonexcludable public good. D. produce a nonexcludable public good if marginal social benefits are equal to marginal private benefits. E. b and d
Which of the following does not necessarily apply to a pure monopoly?
A. The product the firm produces must have no close substitutes B. The firm must be the sole producer of a product C. The firm will charge the highest price possible D. Entry must be blocked
Refer to Figure 4-1. Kendra's marginal benefit from consuming the second ice cream cone is
A) $6.50 B) $6.00 C) $3.00 D) $2.25