Questions from General Economics

Q: What were the monetary and fiscal policy responses to the Great Recession

What were the monetary and fiscal policy responses to the Great Recession? What were some of the reasons suggested for why those policy responses didn’t seem to have as large an effect as anticipated...

Q: Critically evaluate and explain: a. In monopolistically competitive industries

Critically evaluate and explain: a. In monopolistically competitive industries, economic profits are competed away in the long run; hence, there is no valid reason to criticize the performance and ef...

Q: True or False: A higher price level increases aggregate expenditures.

True or False: A higher price level increases aggregate expenditures.

Q: If the government decreases expenditures, the AE curve will shift _______

If the government decreases expenditures, the AE curve will shift _______ and the AD curve will shift _______. a. Down; left. b. Down; right. c. Up; left. d. Up; right.

Q: What would you expect to happen to the proportion of big chain

What would you expect to happen to the proportion of big chain restaurants relative to mom and pop restaurants in a town that lowered its minimum wage? Will the proportion change due to exits or entra...

Q: Refer to Figure 1a and 1b in the Appendix. Assume that

Refer to Figure 1a and 1b in the Appendix. Assume that Q1 is 300, Q2 is 200, Q3 is 100, P3 is 120, P2 is 100, and P1 is 80. If the price level increases from P1 to P3 in graph (b), in what direction a...

Q: Refer to Figure 2 in the Appendix and assume that Q1 is

Refer to Figure 2 in the Appendix and assume that Q1 is $400 and Q2 is $500, the price level is stuck at P1, and the slopes of the AE lines in Figure 2a are .75 and equal to the MPC. In what direction...

Q: Explain how the long run differs from the short run in pure

Explain how the long run differs from the short run in pure competition.

Q: True or False: Real GDP is more volatile (variable)

True or False: Real GDP is more volatile (variable) than gross investment.

Q: If prices are sticky and the number of dollars of gross investment

If prices are sticky and the number of dollars of gross investment unexpectedly increases, the _________ curve will shift ____________. a. AD; right. b. AD; left. c. AS; right. d. AS; left.