According to the graph shown, the consequence of expansionary fiscal policy is:
A. a greater level of potential output.
B. inflation.
C. deflation.
D. a lower level of potential output.
Answer: B
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The Bay Area subway system, BART, offers senior citizens discounted fares for BART rides. This suggests that BART authorities believe that senior citizens have a ________ demand for subway rides
A) less price elastic B) more income elastic C) more price elastic D) less income elastic
Describe the effects of an oil price shock in a Keynesian model; why are such supply shocks difficult to handle using macroeconomic stabilization policies?
What will be an ideal response?
Barriers to entry into oligopoly industries can be the result of patents, ownership of key resources, large start up costs, or pronounced economies of scale
a. True b. False Indicate whether the statement is true or false
The producer's surplus of all firms in an oligopoly is usually the least in the case of a:
A. Stackelberg oligopoly. B. Bertrand oligopoly. C. Cournot oligopoly. D. Sweezy oligopoly.