Keynesian macroeconomists believe that the time it takes for falling wages and prices to eliminate a recessionary gap is __________ enough to say that the economy is __________
A) long; not self-regulating
B) long; self-regulating
C) short; not self-regulating
D) short; self-regulating
A
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Which measure uses a common set of international prices for all goods and services produced?
a. purchasing power parity income levels b. GNI price deflators c. foreign exchange rate conversions to U.S. dollars d. the exchange rate
To determine short-run equilibrium in the economy, we use an aggregate supply curve that is:
a. downward-sloping. b. vertical. c. upward-sloping. d. horizontal. e. parabolic.
Under a system of transferable pollution rights, which of the following firms is most likely to purchase a $500 permit to emit a ton of pollutants in to the atmosphere?
a. a non-polluting firm b. a polluting firm that can reduce emissions at a cost of $500 per ton c. a polluting firm that can reduce emissions at a cost of $200 per ton d. a polluting firm that can reduce emissions at a cost of $600 per ton
Suppose product price is fixed at $24; MR = MC at Q = 200; AFC = $6; AVC = $16. What do you advise this firm to do?
A. Increase output. B. Decrease output. C. Stay at the current output; the firm is losing $200. D. Stay at the current output; the firm is earning a profit of $400.