The slope of the immediate-short-run aggregate supply curve is based on the assumption that:
A. input prices are fixed, but output prices are flexible.
B. input prices are flexible, but output prices are fixed.
C. neither input nor output prices are fixed.
D. both input and output prices are fixed.
Answer: D
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Brett desperately wants to quit smoking, but just can't seem to do it on his own. So, he tells his friends that he will pay them $20 each time they catch him smoking. This agreement with Brett's friends is an example of:
A. an irrational choice B. an opportunistic device C. a commitment device. D. an irrational device.
Kim is paid $50,000 per year, and pays an annual income tax of 10 percent. Due to an inflation rate of 10 percent, her pay increases to $55,000, which puts her in a higher tax bracket where she must pay 20 percent. Which of the following can be said of Kim?
A. Inflation caused her to be taxed more heavily and decreased her purchasing power. B. Inflation caused her to be taxed more heavily and increased her purchasing power. C. Her raise reflects the inflation rate, and therefore her purchasing power is unchanged. D. Inflation caused her to be taxed more but didn’t change her purchasing power.
Which pair of market structures provides firms with the greatest ability to finance R&D out of retained earnings?
A. Oligopolists and pure monopolists. B. Pure competitors and pure monopolists. C. Pure competitors and monopolistic competitors. D. Monopolistic competitors and pure monopolists.
In general, fiscal policy has a longer ________ lag than monetary policy but shorter ________ lag.
A. response; implementation B. implementation; response C. implementation; recognition D. recognition; response