If you concluded from the fact that the last three recessions have occurred while Republicans were President that their fiscal policies create recessions, then you would be
A. wrong because causation and correlation are not the same.
B. wrong and have fallen victim to the fallacy of composition.
C. right.
D. wrong because Democrats are much worse.
Answer: A
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The Bretton Woods agreement created the ________, which was given the task of promoting the growth of world trade by setting rules for the maintenance of fixed exchange rates and by making loans to countries that were experiencing balance of payments
difficulties. A) IMF B) World Bank C) Central Settlements Bank D) Bank of International Settlements
If a perfectly competitive firm doubles its output,
a. price will fall, obeying the law of demand b. it will have no effect on price c. the market supply curve shifts to the left d. its profit will double e. it prevents other firms from entering the market
Assuming the aggregate supply curve is upward-sloping, which of the following is most likely to occur if the Fed pursues restrictive monetary policy?
A. The equilibrium output will decrease but the price level will stay the same. B. The equilibrium price level and output will both decrease. C. The equilibrium price level and output will both increase. D. The equilibrium price level will decrease but output will stay the same.
Homo economicus is all of the following EXCEPT:
A. well-informed. B. narrowly self-interested. C. cognitively naive. D. highly disciplined.