Under which of the following assumption can activist policies have sizable effects on aggregate demand?
A. infrequent information updates
B. rational inattention
C. habit formation among people
D. all of these
Answer: D
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Suppose transactions costs are created by a principal-agent problem. If the objective is economic efficiency, who should be made liable for damages resulting from the interaction of the principal and the agent?
a. The principal should be liable for all damages. b. The agent should be liable for all damages. c. Liability for damages should be equally split between the principal and the agent. d. The assignment of liability is irrelevant according to the Coase Theorem.
In the United States in 2014, the health care industry was the largest employer in ________ states
A) 7 B) 27 C) 34 D) 48
What will happen if there is an increase in an existing tariff on grapes from Argentina?
a. There will be an increase in domestic production of grapes. b. There will be an increase in total American consumption of grapes. c. There will be an increase in American consumption of domestically produced grapes. d. There will be an increase in American imports of grapes from Argentina.
If people anticipate higher inflation, but inflation remains the same then
a. the short-run Phillips curve would shift right and unemployment would rise. b. the short-run Phillips curve would shift right and unemployment would fall. c. the short-run Phillips curve would shift left and unemployment would rise. d. the short-run Phillips curve would shift left and unemployment would fall.