Refer to Figure 9.2. A movement from point d to point a could be caused by a simultaneous ________ and ________
A) increase in the money supply; massive crop failure
B) decrease in the money supply; increase in the price of oil
C) decrease in taxes; decrease in the money supply
D) decrease in government spending; decrease in the price of oil
B
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Which of the following is not a reason why firms experience economies of scale?
A) Workers and managers can become more specialized, enabling them to be more productive. B) As output increases, the managers can begin to have difficulty coordinating the operations of their firms. C) Technology can make it possible to increase production with a smaller increase in at least one input. D) Larger firms may be able to purchase inputs at lower costs than smaller competitors.
Which condition would generate a violation of the Ricardian Equivalence?
A) downward sloping labor supply curve B) underdeveloped credit markets C) inflationary monetary policy D) deflationary monetary policy