Government purchases and income taxes have the same effect on the multiplier
a. True
b. False
Indicate whether the statement is true or false
False
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Refer to the figure above. What is the price that a perfectly competitive firm would charge?
A) $0 B) $3 C) $6 D) $9
All else constant, as the barriers to entry into a particular market increase, so will the ability of firms in that market to earn above-average profits
Indicate whether the statement is true or false
In the IS model, assuming that the real interest rate does not change, an increase in ________ leads to an increase in equilibrium saving by households
A) autonomous consumption B) taxes C) financial frictions D) all of the above E) none of the above
A firm is most likely to have a value of Tobin’s q that exceeds 1 if
a) it is privately held b) it consistently allows depreciation to erode its stock of physical capital c) it holds numerous copyrights d) its optimal capital stock exceeds its actual capital stock e) its gross investment exceeds its net investment