In economics, the concept of active government intervention in the macroeconomy was first emphasized by
A. supply-side economists.
B. rational expectation theorists.
C. monetarists.
D. John Maynard Keynes.
Answer: D
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If the Phillips curve represents a "________ relationship," then the trade-off between unemployment and inflation is permanent
A) cyclical B) structural C) frictional D) dynamic
Assume the auto market is initially in equilibrium with imports from Japan taking up a significant share of the market. Now assume a quota on imports of Japanese cars is established
What will occur at the initial equilibrium price to signal market participants regarding the change that has taken place? A) A surplus is created by an increase in supply. B) A surplus is created by a decrease in demand. C) A shortage is created by an increase in demand. D) A shortage is created by a decrease in supply.
What are two arguments against using the economic method?
a. It is not a fair and diverse approach. b. It is not possible to prove that people behave rationally. c. People do not and should not take only economic factors into their decision making. d. It is too complicated and theoretical.
A price ceiling is
A. above the initial equilibrium price. B. the maximum legal price that can be charged in a market. C. the minimum legal price that can be charged in a market. D. equal to the initial equilibrium price.