Crowding out is a phenomenon focused upon most by the macroeconomists of
owding out is a phenomenon focused upon most by the macroeconomists of

a. monetarism
b. Keynesianism
c. real business cycle theory
d. rational expectations

whereby a government deficit interest rates, which in turn private investment spending.

This group also believed that fiscal policy

A. is the only thing that can lower natural unemployment.
B. faces problematic lags in propagating changes throughout the economy.
C. is just as effective in countering recessions as monetary policy.
D. should be used only if the central bank follows a monetary policy rule.
E. can be used most of the time, but monetary policy becomes a better option when velocity is fluctuating.

Which of the following statements about the relationship between economic costs and accounting costs is true? multiple choice accounting costs are equal to or greater than economic costs. accounting costs must always equal economic costs. accounting costs are always greater than economic costs. accounting costs are always less than or equal to economic costs.

4. suppose that pollution in a neighborhood comes from two factories, with marginal benefit curves given by mb1 = 12 – p1 and mb2 = 8 – p2. the level of pollution in the neighborhood is given by p = p1 + p2. the government wants to limit pollution by instituting a pollution-rights market. the government’s desired level of p is 10, so it prints 10 pollution rights and offers them for sale to the firms.a)find the equilibrium selling price of a pollution right, as well as the allocation of rights (and hence pollution levels) across the two factories. b)repeat part (a) for the case where the government’s desired level of pollution equals 14. c)comment on the usefulness of a pollution rights market in achieving efficient levels of pollution abatement.

Select the correct answer. ramon applied to the state university in the city where he lives, but he was denied admission. what should he do now? a.change his mind about graduating and drop out of high school so he can start working right away. b. decide not to go to college, because he didn’t have a backup plan. c.stay positive and write a mean letter to let the college know that they made a bad decision. d. learn from this opportunity, reevaluate his options, and apply to his second and third choices.