Discuss the consensus on the adjustment process after the crisis
What will be an ideal response?
The crisis has raised a larger issue, about the adjustment process through which output returns to its natural level. If there is a consensus, it might be that with respect to small shocks and normal fluctuations, the adjustment process works, and policy can accelerate this return; but that, in response to large, exceptional shocks, the normal adjustment process may fail, the room for policy may be limited, and it may take a long time for the economy to repair itself.
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If Y = $200 billion, c = 0.75, autonomous consumption = $10 billion, and T = $20 billion, induced saving is
A) $25 billion. B) $50 billion. C) $75 billion. D) $150 billion.
Under perfect competition in the resource market, the marginal factor cost curve:
a. is positively sloped. b. is vertical. c. is negatively sloped. d. is horizontal. e. does not exist.
A market with few sellers, some influence over price, high barriers to entry, a differentiated product, and non-price competition is known as
A. perfect competition. B. monopolistic competition. C. oligopoly. D. monopoly.
A state lottery has a Million Dollar Lottery game that pays $1,000 a week for life. Assuming a 6% nominal rate of interest and generously assuming an infinite lifetime, can this game be called a "Million Dollar Lottery"?
What will be an ideal response?