Increases in potential output shift:
A. the long-run aggregate supply curve, the short-run aggregate supply curve, and the dynamic aggregate demand curve.
B. the short-run aggregate supply curve.
C. the long-run aggregate supply curve.
D. both the long-run aggregate supply curve and the short-run aggregate supply curve.
Answer: D
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Open market operations refer to purchase and sales of
A. bonds by the United States Treasury. B. United States Treasury securities on the open market by the Fed. C. corporate stocks and bonds by the corporation commission. D. corporate securities on the open market by the Fed.
In the cost-benefit analysis of public goods, the benefits
A. Can be accurately measured using the market price of the public good. B. Are more easily estimated than the costs. C. Can be only roughly estimated using highly subjective techniques. D. Can be accurately measured by ballot box economics.
If a purely competitive firm is maximizing economic profit:
A. it is necessarily maximizing per-unit profit. B. it may or may not be maximizing per-unit profit. C. then per-unit profit will be minimized. D. it is necessarily overallocating resources to its product.