Refer to the information provided in Figure 32.2 below to answer the question(s) that follow.
Figure 32.2Refer to Figure 32.2. According to ________ economists, under rational expectations an expected increase in government spending would not change AD or AS.
A. Keynesian
B. the new classical
C. monetarist
D. none of the above
Answer: B
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Assume that a worker in a technology firm can produce 3 circuit boards in an hour. Due to subsequent innovation, he is now able to produce 6 circuit boards per hour. Other things remaining the same, the firm's supply curve is likely to:
A) shift to the left. B) shift to the right. C) become steeper. D) remain unchanged.
A movie monopolist sells to students and adults. The demand function for students is QdS = 600 - 100P and the demand function for adults is QdA = 1,200 - 100P. The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. What is the monopolist's profit from students?
A. $400 B. $2400 C. $2500 D. $0
Assuming the monopolist shown in the graph adjusts output to maximize profits, it is
A. earning profits in the short-run.
B. having losses in the short-run.
C. earning profits in the long-run.
D. earning profits and could be in the short-run or long-run.
If the CPI rises, the number of dollars needed to buy a representative basket of goods
a. increases, and so the value of money rises. b. increases, and so the value of money falls. c. decreases, and so the value of money rises. d. decreases, and so the value of money falls