A decrease in long-run aggregate supply increases the value of real GDP at the natural rate of unemployment for all price levels
a. True
b. False
Indicate whether the statement is true or false
False
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Perfect Shots is company specializing in wedding photos and they have a fixed advertising budget. Perfect Shots advertises on the radio and the television and it costs $5,000 per unit of radio advertising and $14,000 per unit of television advertising. At their current advertising levels, the marginal benefit from radio advertising is $4,800 and the marginal benefit from television advertising is
$14,250. To optimally allocate their advertising budget, Perfect Shots should ________. A) decrease the amount of advertising in radio and television B) increase the amount of advertising in radio and decrease the amount of advertising in television C) decrease the amount of advertising in radio and increase the amount of advertising in television D) increase the amount of advertising in radio and television
For suppliers, the ________________ elasticity is greater than the _____________ elasticity because they have ______________
a. short run supply; long run supply; no time to adjust b. short run price; long run supply; time to adjust c. long run supply; short run price; no time to adjust d. short run supply; long run price; time to adjust e. long run supply; short run supply; time to adjust
Which of the following examples would enhance the effectiveness of the Fed’s monetary policy?
a. The Fed wants an expansionary policy; the fiscal policy makers want to raise interest rates. b. The Fed wants a contractionary policy; the fiscal policy makers want to increase exports c. The Fed and fiscal policy makers advocate different ways to deal with a recession. d. The Fed and fiscal policy makers both prioritize curbing inflation.
An example of a public good would be
A. a plane ride from Miami to Dallas. B. flood control protection from a government authority. C. a commuter's trip to work by car from Berkeley to Chicago. D. a bus ride from Phoenix to Los Angeles.