If banks do not loan out all their excess reserves, then the real world multiplier is

As pointed out by the "big tradeoff," government action that redistributes incomes so that everyone has the same income leads to

A) fairness according to the "fair rules" approach. B) efficient markets. C) resources being allocated according to a command system. D) a smaller total output. E) lower taxes on the rich than on the poor so that the rich do not lose their incentive to work.

How does the long run differ from the short run in perfect competition?

a. In the long run, some firms will charge higher prices than others. b. In the short run, a firm seeks to maximize profit; in the long run it seeks to minimize cost. c. In the short run, a firm seeks to maximize profit; in the long run it seeks to maximize revenue. d. The long run is long enough to allow for the entry of new firms into the industry.