Essay
What are three reasons for a competitive equilibrium not being Pareto-optimal? What two questions arise
from these inefficiencies?
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A competitive equilibrium may not be Par...View Answer
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Correct Answer:
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Q46: A competitive equilibrium has the following
Q47: An increase in total factor productivity<br>A)increases consumption,
Q48: In the long run in the model
Q49: In the basic one-period model in Chapter
Q50: A competitive equilibrium is Pareto-optimal if there
Q52: Changes in government spending are NOT likely
Q53: An increase in government spending<br>A)reduces consumption, increases
Q54: In the model with Keynesian sticky wages
Q55: The marginal rate of transformation is<br>A)is equal
Q56: An increase in total factor productivity shifts