The existence of economic fluctuations makes it clear that
a. we should stimulate the economy with tax cuts
b. recessions are caused by shifts in labor supply
c. we should pass a balanced budget amendment to the U.S. Constitution
d. we need active monetary regulation
e. the classical model has a flaw
E
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Which of the following best describes the difference between a demand curve and a demand schedule?
A) A demand curve shows different quantities of a good demanded at different prices, whereas a demand schedule shows different quantities of a good demanded at different incomes. B) A demand curve can be derived from a demand schedule, but a demand schedule cannot be derived from a demand curve. C) A demand curve shows different quantities of a good demanded at different incomes, whereas a demand schedule shows different quantities of a good demanded at different prices. D) A demand curve is a graphical representation of the relationship between the quantity of a good and its price, whereas a demand schedule is a tabular representation.
From the perspective of consumers, a quota is preferred to a tariff
Indicate whether the statement is true or false
Suppose Jill's consumption bundle is made up of 2 goods, apples and bottles of juice. If the price of an apple increases, then Jill's budget line would
A) not change. B) shift towards the origin on the apples axis only. C) shift towards the origin on both the apples and bottles of juice axes. D) shift away from the origin on the bottles of juice axis only.
Suppose the rate of inflation in a country increases from 4% to 8% within a few months. This will cause: a. the demand curve for the currency to shift to the right
b. the demand curve for the currency to shift to the left. c. an upward movement along the demand curve for the currency. d. an upward movement along the supply curve for the currency.