Milton Friedman and Anna Jacobson Schwartz stated that
A. changes in the behavior of the money stock have been closely associated with changes in economic activity, money income, and prices.
B. the basic problem during recession is inadequate aggregate demand.
C. the capitalist system is inherently unstable; it tends toward cycles of overproduction and recessions.
D. the only way to stabilize the economy is through very forceful fiscal policy.
A. changes in the behavior of the money stock have been closely associated with changes in economic activity, money income, and prices.
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After sugar refiner has produced fine sugar for baking purposes, what is left over is used to produce molasses. This technology exhibits
a. Economies of scale b. Economies of scope c. Diseconomies of scale d. Diseconomies of scope
Which of the following responses to a positive externality enhances society's welfare?
a. taxes b. subsidies c. effluent fees d. quotas e. a cut in funding
Nominal GDP is based on prices prevailing when production takes place
Indicate whether the statement is true or false
You have just won a ticket to see John Mayer in concert this Saturday evening. Nevertheless, it would cost you around $20 in transportation costs to go to the concert since you would have to drive to the neighboring city (where the concert is taking place). Tickets for the concert are selling for $100 in your town. Assuming you only work Monday-Fridays, the cost of going to the concert is:
A. $0 B. $80 C. $120 D. $100