During a severe and persistent recession, Keynesians would most likely propose
A) tax increases.
B) a tight money policy.
C) annually balanced federal budgets.
D) macroeconomic stabilization.
D
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A regulatory agency that imposes a price ceiling in order to limit monopoly profits to a "fair rate of return" is forcing the monopolist to sell at a price equal to
a. average fixed cost. b. average total cost. c. marginal cost. d. average variable cost.
Refer to the information provided in Figure 2.6 below to answer the question(s) that follow.
Figure 2.6Refer to Figure 2.6. Which of the following is most likely to shift the production possibility frontier from ppf2 to ppf1?
A. the purchase of government Treasury bills B. a change in consumer tastes C. a decrease in the general educational level of the population D. moving resources from consumer goods to capital goods