If the shifts in AD that will result from policy changes are fully and accurately anticipated, an increase in government purchases or a decrease in taxes would result in which of the following in the short run?
a. a higher level of real output and a higher price level
b. a higher level of real output but no change in the price level
c. a higher price level and a reduced level of real output
d. a higher price level but no change in real output
d
Economics
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Patents encourage inventions because without a patent
A) other firms could enter the inventor's market by producing the same product. B) nobody would demand the inventor's product. C) the inventor would receive no tax breaks. D) all markets would be public franchises.
Economics
Which of the following would tell us that resources are not flowing to their highest valued uses?
A) short-run economic profits B) short-run economic losses C) song-run economic profits D) Some firms are just breaking even.
Economics