When the economy experiences abnormally high unemployment,
A. The economy is producing on the production possibilities curve.
B. There is government failure.
C. There is macro instability.
D. No market failure occurs.
Answer: C
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Which of the following is an example of an automatic fiscal policy action?
A) increased unemployment payments resulting from higher unemployment B) an increase in spending on defense goods resulting from increased world tensions C) an increase in the tax rate resulting from a desire to shrink the budget deficit D) a decrease in the tax rate resulting from an effort to increase aggregate demand to combat a recession E) None of the above answers is correct.
Differentiate between double oral auctions and bilateral negotiations
What will be an ideal response?
Over time:
A. all three measures of money have increased, in general. B. hard money spiked up dramatically in 2008 in response to the financial crisis. C. M2 sped up its rate of increase starting around 1995. D. All of these are true.
An increase in the number of corporations in a portfolio from 1 to 10 reduces
a. market risk by more than an increase from 110 to 120. b. market risk by less than an increase from 110 to 120. c. firm-specific risk by more than an increase from 110 to 120. d. firm-specific risk by less than an increase from 110 to 120.