Refer to Figure 28-9. A follower of the new classical macroeconomics would argue that ________ like that pursued by Paul Volcker in 1979, would result in a movement from C to A
A) expansionary fiscal policy B) contractionary monetary policy
C) contractionary fiscal policy D) expansionary monetary policy
B
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The Coase theorem states that
A) government intervention is always needed if externalities are present. B) assigning property rights is the only thing the government should do in a market economy. C) under certain conditions, the property right to an activity will be acquired by the party that values it most. D) a free-market equilibrium is the best solution to address externalities.
When cost and demand are stable over time in an industry, repetition of Prisoners' Dilemma situations
A) can yield cooperative outcomes because firms can explicitly collude to set prices. B) can yield cooperative outcomes even when firms do not explicitly collude to set prices. C) cooperative or noncooperative outcomes may occur, but cooperation is harder than when the market is unstable. D) will tend to yield noncooperative outcomes. E) will always yield noncooperative outcomes.
The study of how firms interact in a market is a
a. waste of time b. normative subject c. microeconomic topic d. topic in political science e. macroeconomic topic
The term "satisficing" indicates an optimal choice
a. True b. False Indicate whether the statement is true or false