The economic view that retains the assumption of rational expectations but drops the assumption of completely flexible prices and wages is called
A. new Keynesian economics.
B. real business-cycle economics
C. supply-side economics.
D. monetarism.
Answer: A
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When all the factors of aggregate expenditure are influenced by income, the multiplier becomes a function of the: a. marginal propensity of government purchases
b. marginal propensity to consume out of disposable income. c. marginal propensity of aggregate expenditure. d. marginal propensity to import.
Pair-wise majority voting entails:
A. voting on options that is done in pairs, and the majority vote wins. B. voters ranking all available options and the option most approved of wins. C. one vote with many options, and the option with the most votes wins. D. None of these describes pair-wise majority voting.
Are comic books money?
A. Yes, because the way economists define money, basically everything is money. B. Yes, because comic books can easily be traded for goods and services. C. No, because money cannot be something with intrinsic value, which comic books have. D. No, because selling a comic book takes work and provides an uncertain amount of funds.
Answer the following statement true (T) or false (F)
1) Sales taxes on consumer goods are regressive because poor people consume a larger proportion of their incomes than do rich people. 2) A highly progressive tax takes relatively more from the rich than it does from the poor. 3) Given supply, the more inelastic the demand for a product, the larger the portion of an excise tax that is shifted to consumers. 4) Given demand, the more inelastic the supply of a product, the larger the portion of an excise tax that is borne by producers.