A perfectly competitive firm will earn positive economic profits in the range of output for which the firm’s price is _________ its minimum average total cost.
A) below
B) above
C) equal to
D) below its marginal cost and
B) above
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What insights into the macroeconomic consequences of financial frictions arise from the new Keynesian model?
What will be an ideal response?
Compared to England, the 19th century American manufacturing labor force was:
a. less likely to unionize. b. less mobile. c. less accepting of technological change in the workplace. d. less productive.
An economic expansion caused by a shift in aggregate demand remedies itself over time as the expected price level
a. falls, shifting aggregate demand right. b. rises, shifting aggregate demand left. c. falls, shifting aggregate supply right. d. rises, shifting aggregate supply left.
Modern Keynesians differ from traditional Keynesians because modern Keynesians
A. Believe that failures of the economy are inherent in a capitalist economy. B. Believe that tax cuts and government spending should be used to increase aggregate demand and output. C. Favor fixed rules and steady, predictable policies. D. Believe that monetary policy can be useful in managing the economy.