Which of the following explains why fluctuations in real GDP have become less volatile in the United States since 1950?
A) Services have become a smaller fraction of GDP since the 1950s.
B) Unemployment insurance and other government transfer programs are more prevalent since the 1950s.
C) The government has become more reluctant to intervene when real GDP declines and unemployment rises since the 1950s.
D) both B and C
Answer: B
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Refer to the Article Summary. If the 12 nations that are a part of the TPP do agree to these stricter pharmaceutical patent laws as a way to increase intellectual property rights, all of the following would most likely occur except
A) more patents would be issued to pharmaceutical companies. B) pharmaceutical companies would increase investment in the development of more experimental drugs. C) fewer dollars would be spent on the development of new medicines. D) pharmaceutical companies would consider expanding operations to these TPP nations.
In order for a bank to earn as much profit as possible, its excess reserves should be:
a. equal to its required reserves. b. as small as possible. c. less than its vault cash. d. growing at a constant rate.
The profit-maximizing level of output for any firm in a perfectly competitive market is to produce where:
A. MC > MR. B. MC < MR. C. MC = MR. D. MR = P*.
Who benefits from a higher than expected inflation rate?
a. Lenders and workers. b. Lenders and businesses. c. Borrowers and workers. d. Borrowers and businesses. e. None of the above.