In the short-run, society faces a tradeoff between inflation and unemployment
a. True
b. False
Indicate whether the statement is true or false
True
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Q: How many economists does it take to change a light bulb? A: All. Because then you will generate employment, more consumption, moving the aggregate demand curve to the right. This joke represents the view of
A) classical economists. B) Keynesian economists. C) economists who contend that money illusion never occurs. D) economists who conclude that wages and prices are very flexible.
The government sometimes grants a firm the exclusive right to market a good or process for a fixed period of time. This is called
a. laissez-faire b. a patent c. contestable markets d. economies of scale e. monopolistic competition
Which of the following was not a cause of the Great Recession?
a. Excessive use of the "originate-to-hold" strategy. b.Government incentives to increase home ownership. c. Government encouragement of creative home-buying strategies. d. Relaxation of bank underwriting standards. e. All of the above were causes of the Great Recession.
Which of the following most accurately summarizes the implications of an economy's production possibilities curve?
A. If all the resources of an economy are being used efficiently, more of one good can be produced only if less of another good is produced. B. If all the resources of an economy are being used efficiently, it is generally possible to produce more of one good without having to sacrifice the production of other goods. C. Over time, it is generally impossible for a country to expand its production of goods. D. An economy will automatically move toward a point that lies outside of the production possibilities constraint unless proper government policy constrains production.