With rational expectations, a correctly anticipated policy that would increase AD would lead to:
a. higher inflation and lower unemployment in the short run
b. higher inflation and higher unemployment in the short run.
c. higher inflation and no change in unemployment in the short run.
d. lower inflation and lower unemployment in the short run.
c
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It is estimated that in 2007, Mexico had a population of 110 million and Brazil had a population of 190 million. At the same time, Mexico's GDP was $1 trillion while Brazil's was $1.31 trillion. These data show that
A) Brazil had a healthier economy than did Mexico. B) Mexico's GDP per person was lower than was Brazil's GDP per person in 2007. C) Mexico's GDP per person was $9090 in 2007. D) Brazil's GDP per person was $5300 in 2007.
When a perfectly competitive firm is in long-run equilibrium, what is the relationship between the firm's marginal cost, average total cost, marginal revenue, and price?
What will be an ideal response?
Which of the following is the accurate equation for velocity?
a. V = (M x Q)/ P b. V = P x Q x M c. V = (P x Q)/M d. V = P + Q รท M
Recall the Application about the British experience with private water companies in the nineteenth century to answer the following question(s).Recall the Application. Based on the British experience with water distribution, the most efficient way to provide water is through:
A. a regulated monopoly. B. a duopoly. C. an unregulated monopoly. D. perfect competition.