Governments have learned that a(n)
a. increased budget deficit tends to reduce interest rates and increase investment, thus increasing the growth of the capital stock
b. reduced budget deficit tends to reduce interest rates and increase investment, thus increasing the growth of the capital stock
c. reduced budget deficit tends to increase interest rates and increase investment, thus increasing the growth of the capital stock
d. reduced budget deficit tends to increase interest rates and increase investment, thus reducing the growth of the capital stock
e. increased budget deficit tends to increase interest rates and increase investment, thus reducing the growth of the capital stock
B
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The theory of new Keynesian inflation dynamics suggests that a fall in aggregate demand would
A) immediately raise real GDP, followed by a more sluggish increase in the price level. B) immediately raise the price level, followed by a more sluggish decline in real GDP. C) immediately reduce real GDP, followed by a more sluggish decline in the price level. D) immediately reduce the price level, followed by a more sluggish decline in real GDP.
In an oligopoly market
A) individual firms pay no attention to the behavior of other firms. B) one firm's pricing decision affects all the other firms. C) the pricing decisions of all other firms have no effect on an individual firm. D) advertising of one firm has no effect on all other firms.
Trade-offs force society to make choices when answering what three fundamental questions?
A) What will be the prices of goods and services; how will these goods and services be produced; and who will receive them? B) What goods and services to produce; how will these goods and services be produced; and who receives them? C) Who gets jobs; what wages do workers earn; and who owns what property? D) How much will be saved; what will be produced; and how can these goods and services be fairly distributed?
Research by economists Martin Hackmann, Amanda Kowalski, and Jonathan Kolstad indicates that the individual mandate provision of the Massachusetts health care program was responsible for a(n) ________ in premiums and the mandate helped to ________
premium increases in subsequent years. A) increase; accelerate B) increase; hold down C) decrease; accelerate D) decrease; hold down