An expansionary monetary policy is most likely to increase real output
a. when the economy is operating at less than full-employment capacity.
b. when the economy is at full employment.
c. when actual output is beyond the economy's long-run capacity.
d. when the inflationary side effects are fully anticipated by decision makers.
A
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The incentive for people to avoid paying for a resource when the benefits they obtain from the resource are unaffected by whether they pay is known as ___________________.
a. the Coase Theorem. b. an upstream tax. c. the holdout effect. d. free market environmentalism. e. None of the above.
In perfect competition, the price of the product is determined where the market
A) elasticity of supply equals the market elasticity of demand. B) supply curve and market demand curve intersect. C) average variable cost equals the market average total cost. D) fixed cost is zero.