In contrast to the post–World War II period, before 1940 the government
A. actively intervened in the economy for stabilization purposes.
B. used aggregate demand management to avoid recessions.
C. rarely intervened in the economy to influence inflation or unemployment rates.
D. used government ownership to guarantee full employment.
Answer: C
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The two most important factors contributing to increased productivity in industrialized countries in the twentieth century were:
A. higher relative prices and technological progress. B. higher relative prices and a larger labor supply. C. technological progress and increases in the labor supply. D. technological progress and increases in the capital stock.
From 1837 and up until the Civil War, the United States adhered to a
A) gold standard. B) silver standard. C) bimetallic standard. D) bronze standard. E) copper standard.
Suppose that Venezuela experiences significant capital outflows after a recent election. If the nation had flexible exchange rates, what effect would these flows have had on Venezuela's reserves account and value of the Bolivar (the Venezuelan currency)?
a. Reserves account would rise and value of the Bolivar would fall. b. Reserves account would not change and value of the Bolivar would fall. c. Reserves account would fall and value of the Bolivar would not change. d. Reserves account would fall and value of the Bolivar would fall. e. Reserves account would fall and value of the Bolivar would rise.
Demand-pull inflation is caused by
A. An increase in resource costs as an economy's production capacity is approached. B. Excessive aggregate demand in relation to an economy's production capacity. C. An increase in aggregate supply. D. An increase in inventories.