If the political leaders of a country want to promote economic growth, which of the following policy alternatives would be most effective?
a. imposition of price controls on agricultural products in an effort to keep food cheap
b. a public-sector investment program financed by highly progressive taxation
c. low taxes, a monetary policy consistent with long-run price stability, and the abolition of price controls and trade restrictions
d. expansionary monetary policy designed to keep interest rates low
C
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Consumer surplus is the:
A) difference between the buyer's reservation value and the price he actually pays. B) product of a buyer's reservation value and the price he actually pays. C) sum of a buyer's reservation value and the price he actually pays. D) ratio of a buyer's reservation value to the price he actually pays.
Suppose that for several periods the aggregate demand and supply curves have been intersecting at the same point, and at full employment. Then the central bank increases money growth as the result of an announced policy change
Under New Classical assumptions the likely short-run result is __________ output and __________ price level. A) rising; a rising B) rising; an unchanged C) unchanged; a rising D) unchanged; an unchanged
If you knew that an investment was going to pay you $128 in 5 years, and you knew that the annual interest rate over that time would be 5 percent, you could calculate the present value to be:
A. $90. B. $95. C. $105. D. None of these is true.
Use the above table and assume a fixed cost of $200. At an output of 0, total cost is
A. 0.
B. $100.
C. $200.
D. $300.