If the self-correcting mechanism operates quickly,
A. direct intervention is less necessary to close a recessionary gap.
B. fiscal stimulus is far more useful in closing a recessionary gap than monetary policy.
C. monetary policy is far more useful in closing a recessionary gap than fiscal policy.
D. fiscal stimulus is ineffective and inflation will occur.
Answer: A
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The unregulated, single-price monopolist illustrated in the figure above has a total revenue of
A) $8.00 per day. B) $16.00 per day. C) $36.00 per day. D) $40.00 per day.
Which of the following is a determinant of the price elasticity of demand for a product? I. The existence of substitute goods II. The percentage of a consumer's total budget devoted to purchases of that commodity
A) I only B) II only C) both I and II D) neither I nor II
Productivity growth is the main cause of rising living standards
a. True b. False Indicate whether the statement is true or false
The short-run aggregate supply curve has a
A) negative slope. B) positive slope. C) slope equal to infinity. D) slope equal to zero.