If the Fed responds to an increase in government spending with the goal of stable prices and output, which of the following would be the result?
a. A larger multiplier effect than normal
b. Partial crowding out
c. An increase in consumption and investment spending
d. No crowding out
e. Complete crowding out
E
Economics
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Which of the following is TRUE of a natural monopoly?
A) Its long-run average cost curve slopes upward as it intersects the demand curve. B) Economies of scale exist to only a very low level of output. C) Economies of scale allow one firm to supply the entire market at the lowest possible cost. D) The firm is not protected by any barrier to entry.
Economics
The figure above provides information about Light-U-Up Utilities, which is a natural monopoly that provides electricity. At the unregulated price and quantity, Light-U-Up's economic profit is equal to
A) -$10. B) $10. C) $40. D) $60.
Economics