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The main ideas of Keynesian economics are:
a-the importance of the long run over the short run, and an emphasis on a vertical SRAS curve.
b-the importance of the long run over the short run, and an equal emphasis on the AD curve and the SRAS curve.
c-the importance of the short run over the long run, and an emphasis on the AD curve and a rising SRAS curve.
d-the importance of the free market with no government intervention, and an emphasis on monetary policy in the long run.
In the early 2000s, analysts feared that low academic achievement in math in the United States may reduce U.S. economic growth by as much as half a percentage point a year. "That drag will become increasingly apparent…as other countries dismantle reg..
In December 2014, the international price of oil has dropped to almost half of its level in June 2014. What do you think the expected impact of this drop on the US economy in the short run and in the long run using the AD and AS model? Hint: Think of..
A basic assumption of the long run is that a firm:
Describe in detail the relationship that exists between the economy and the environment. explain the various interactions between the two and discuss any binding constraints the environment place on the economy.
Environmentalists argue that we should protect the environment as much as possible, regardless of the cost involved. Which of the following is one of those costs?
Suppose that you have utility in your wealth that is accurately described by this function: U = W^1/2. Further, suppose that your wealth is $1,000,000. What is the maximum amount you would pay to eliminate a risk that, with p = 0.001, your wealth wou..
Which of the following practices is restricted by the antitrust laws of the United States? The first phase of antitrust policy in the U.S. began with the passage of the Sherman Antitrust Act in 1890. To judge a firm’s action, the courts in this perio..
Where P is the price of good X, M is average income of consumers who buy good X, and Pr is the price of related good R. The values of P, M, and Pr are expected to be $200, $60,000 and $100, respectively. Compute the quantity of good X demanded for th..
Which of the following is an example of sexist language?
To combat the problem of adverse selection, __________ informed parties can employ ___________ techniques.
The demand for the product is p = 70-0.7x where x is the quantity for the item sold a $p dollars per piece. Determine the revenue function and the domain of the function. What price should the company charge to obtain the largest revenue? What is the..
How is government debt related to the government deficit? What factors contribute to a large change in the debt-GDP ratio? Why do economists suggest that tax rates be kept roughly constant over time, rather than alternating between high and low level..
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