One of the potential economic problems associated with the extensive use of macropolicy to recover from the Great Recession is
A. the huge government deficits and the flood of money into the banks could set off an inflationary spiral.
B. the large amount of government spending for job creation could result in rapid and uncontrollable increases in wages.
C. the flood of money into the banks could cause excessive investment expenditures in the economy.
D. the tax rebates made available to consumers could cause uncontrollable increases in the price of housing.
A. the huge government deficits and the flood of money into the banks could set off an inflationary spiral.
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Suppose a perfectly competitive market is in long-run equilibrium and then there is a permanent increase in the demand for that product. The new long-run equilibrium will have
A) fewer firms in the market. B) more firms in the market. C) the same number of firms in the market. D) probably a different number of firms, but it is not possible to determine if there will be more or fewer firms. E) a permanent decrease in supply.
Bob is the only carpet installer in a small isolated town. The above figure shows the demand curves of two distinct groups of customers-residential and business
If the marginal cost of installing carpet is a constant $1 per sq yard, what price does Bob charge each segment?