Which of the following stresses the inability of the government to improve short-run market outcomes?
A. Monetary policy
B. New classical economics
C. Supply-side policy
D. Fiscal policy
B. New classical economics
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There are five hundred buyers in the market for cheese. If we know each individual's demand curves, to find the market demand, we must
A) multiply the price times quantity for each buyer and then add the resulting products together. B) add the quantities that each buyer will purchase at every price. C) add the prices that each buyer will pay at every quantity. D) average the price each buyer is willing to pay for each given quantity. E) give up because there is no way to find the market demand.
Price ceilings are adopted in most cases because
A) the government views the current equilibrium price as too high for consumers. B) the government wants to create surpluses. C) the government favors a non-intervention policy. D) producers need incentives to produce more of the good or service.
The Bretton Woods system
a. fixed exchange rates in terms of U.S. dollars. b. fixed exchange rates in terms of all major currencies. c. fixed exchange rates in terms of gold. d. established a system of flexible exchange rates.
The rule of 72 implies that a country will double its income in about 4 years if its growth rate is:
A. 25 percent. B. 18 percent. C. 8 percent. D. 12 percent.