Suppose that the only maker of a particular type of horse hair clothing exits the industry because demand is too low. The correct analysis of this situation is that
a. the producer's decision is irrational, since monopolies are not limited by the demand curve
b. the producer's decision is irrational, since monopolies never go out of business
c. the producer's decision is irrational, since it could simply raise the price
d. the price received by the producer was lower than the marginal cost in the long run
e. the price received by the producer was lower than the average total cost in the long run
E
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In 2009, just after taking office, President Obama approved an $800 billion stimulus package of tax cuts and increased government spending to combat the recession brought on by the financial crisis of 2007
Which group of economists most approved of President Obama's actions? A) Keynesian economists B) classical economists C) monetarists D) free market economists
Which of the following is most likely to lead to demand-side inflation?
A. An increase in government spending B. A decrease in taxes C. An increase in the money supply D. All of these responses are correct.