The historical record suggests that
A) the Phillips curve is horizontal.
B) once policy makers attempted to exploit a short-run Phillips curve trade-off, it disappeared.
C) shifts in long-run aggregate supply do not affect real output.
D) inflation rates are lowest when unemployment rates are also low.
B
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If Walmart issues $250 million in new stock to finance the renovation of their retail stores, this is an example of
A) a stock market transaction. B) indirect finance. C) a bond market transaction. D) direct finance.
The federal agencies that examine banks include
A) the Federal Reserve System. B) the Internal Revenue Service. C) the SEC. D) the U.S. Treasury.
In the Cobb-Douglas production function Y = AK3/4L1/4,
A) capital is a more expensive input than labor. B) capital is more plentiful than labor. C) diminishing returns to capital are three times greater than are diminishing returns to labor. D) capital has a larger share in national income than does labor.
If the government wanted to efficiently limit the emission of carbon monoxide by all firms to exactly 4 million tons it could
A) issue rights to pollute worth 4 million tons and let the firms trade those rights in a market. B) appeal to firms' environmental conscience to pollute less. C) subsidize production. D) rely on the Coase Theorem.