When the crowding-out effect of an increase in government purchases is included in the analysis:
a. AD shifts left, but by more than the simple multiplier analysis would imply.
b. AD shifts left, but by less than the simple multiplier analysis would imply.
c. AD shifts right, but by more than the simple multiplier analysis would imply.
d. AD shifts right, but by less than the simple multiplier analysis would imply.
d
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The ways to address agency costs include all EXCEPT
a. advertising for employee positions in as many outlets as possible b. requiring employees to punch time clocks c. spot checks of the quality of employee work d. replacing closed offices with cubical office spaces
The principal concept behind comparative advantage is that a nation should:
A. Maximize its volume of trade with other nations B. Use tariffs and quotas to protect the production of vital products for the nation C. Concentrate production on those products for which it has the lowest domestic opportunity cost D. Strive to be self-sufficient in the production of essential goods and services