The rate of unemployment is a topic of microeconomics.
Answer the following statement true (T) or false (F)
False
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Policies adopted by a country's central bank that influence interest rates and credit conditions, which in turn influence consumer and business spending are called:
A) monetary policy. B) fiscal policy. C) foreign policy. D) exchange rate policy.
Monetarists tend to think that the aggregate demand curve is
A) stable. B) vertical. C) horizontal. D) sensitive to changes in investment spending.
A holdup problem occurs
A) when a financial institution undertakes too little investment in security. B) when one firm must make a specific investment and a second firm takes advantage of it. C) if the firm that moves second in a Stackelberg game chooses the incorrect output level. D) if you are entering into a contract with a government entity.
Tax wedge is the difference between tax induced price paid by customer and the tax amount
A. True B. False C. Uncertain