If the government uses stabilization policies to reduce inflation, the economy may have to suffer
a. higher rates of real GDP growth.
b. higher rates of unemployment.
c. lower rates of unemployment.
d. higher rates of price level growth.
b
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What did the Federalists believe about banking?
(A) They believed that state governments should own and run the nation's banks. (B) They believed that the banking system already in existence was sufficient. (C) They believed that a centralized banking system was necessary. (D) They believed an international banking system would be best.
"Lower marginal tax rates encourage people to work, save, and invest, resulting in more output and a larger tax base." This statement most closely reflects which of the following schools of economic thought?
A. Keynesian B. Adam Smithian C. Marxist D. Supply-side economics
Consider that a cartel is functioning at full effectiveness. If the cartel's marginal cost of production increases, the cartel's profit-maximizing price
A. also increases. B. initially decreases and then increases. C. decreases. D. remains constant.
Effective usury laws cause:
A. a surplus in the market for loanable funds. B. the quantity of loanable funds demanded to be brought into balance with the quantity supplied. C. the quantity of loanable funds demanded to exceed the quantity supplied. D. the quantity of loanable funds supplied to exceed the quantity demanded.