As uncertainty about the effects of policy on output decreases, we would expect that
A) policy makers would be more frequently implement fine tuning policies.
B) policy makers would implement more active policies.
C) policy makers would implement less active policies.
D) both A and B
E) both A and C
D
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A firm increases both its plant and its labor force by the same percentage and its average total costs remain unchanged. Is the firm experiencing increasing returns to scale, constant returns to scale, or decreasing returns to scale?
What will be an ideal response?
The greater the positive cross elasticity of demand between products A and B, the: a. greater the degree to which they are substitutes
b. greater the degree to which they are complements. c. smaller the elasticity of demand for both products. d. greater will be both products responsiveness to changes in income.