In a market economy, decisions about what to produce are made primarily by
a. the government.
b. individuals and firms.
c. firms in consultation with the government.
d. a central planning committee.
b. individuals and firms.
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Briefly describe some of the current policies the United States has in place to limit both fairly and unfairly traded goods
What will be an ideal response?
A crucial national income accounting identity has (S + T) equal to
A) I + G - NX. B) I + G + F. C) I + NX. D) G + F. E) I + G + NX.
In the Solow growth model, an increase in the savings rate
A) raises steady state per capita output. B) raises the growth rate in aggregate output. C) must reduce per capita consumption. D) must reduce the standard of living.
An essentially classical feature in the supply-side perception of the saving-investment process is an emphasis on
a. income and, therefore, on aggregate demand. b. the importance of rates of return as influences on the rates of saving, investment, and thus capital formation. c. the inflation rate. d. money neutrality e. both b and d.