Which of the following is an argument against trying to use policy to stabilize the economy?
a. Recessions represent a waste of resources.
b. Pessimism on the part of households and firms may become a self-fulfilling prophecy.
c. "Leaning against the wind" requires policymakers to increase aggregate demand in recessions and reduce aggregate demand in booms.
d. Macroeconomic forecasting is not developed sufficiently to allow policymakers to change aggregate demand at the proper time.
d
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The difference between gross investment and net investment is
A) the capital stock. B) depreciation. C) the real interest rate. D) equal to saving.
In its long-run equilibrium, a firm in monopolistic competition
A) makes zero economic profit and operates with excess capacity. B) makes zero economic profit and produces above capacity output. C) makes a positive economic profit and operates with excess capacity. D) makes a positive economic profit and produces above capacity output.
__________ is the set of characteristics, skills and knowledge that distinguishes certain people from novices and less experienced people
a. Expertise b. Imagineering c. Performance d. A value chain
All welfare programs are means-tested income transfers
Indicate whether the statement is true or false