According to mainstream economic analysis, a balanced-budget rule for fiscal policy would be:
A. Countercyclical
B. Ineffective
C. Destabilizing
D. Pro-growth
C. Destabilizing
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Recessions are largely the result of
A) high wages. B) the wishful thinking of zero economic growth advocates. C) widespread and systemic errors from manipulated market signals. D) none of the above.
Looking at the macroeconomic statistics for Friedmanland, you discover that at the beginning of the year, the national money supply was equal to $400 million and by the end of the year it was equal to $420 million
You also found out that the inflation rate in Friedmanland was 7%. In this case, you would expect the LM curve to A) shift up and to the left as the real money supply falls. B) shift up and to the left as the real money supply rises. C) shift down and to the right as the real money supply falls. D) shift down and to the right as the real money supply rises.
If the price of the output produced by a perfectly competitive firm increases, then:
a. the marginal-cost curve will shift up. b. the demand curve faced by the firm will shift to the left. c. marginal cost will fall as output declines. d. the marginal-revenue curve for the firm will shift up. e. the marginal-cost curve for the firm will shift down.
Changes in land rents in the United States are chiefly the result of
A. changes in the demand for land. B. increased land fertility. C. production of new land. D. changes in the supply of land.