Economic rents

A. accrue only to land.
B. accrue only to labor.
C. accrue only to entrepreneurs.
D. can accrue to any resource.


D. can accrue to any resource.

Economics

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Keynesian economists argue that the automatic adjustment of wages and prices in the macro economy is quite rapid

a. True b. False Indicate whether the statement is true or false

Economics

Only money prices affect incentives; shadow prices do not.

Answer the following statement true (T) or false (F)

Economics

Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.

A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower

Economics

Which of the following is NOT related to fiscal policy?

A) increasing government expenditures B) decreasing marginal tax rates C) passage of new securities laws D) reducing the budget deficit

Economics