Which of the following would most likely prevent economists from making accurate economic predictions?
a. lack of accurate statistics for the past 50 years
b. being unsure about how firms and consumers will respond to changes in monetary policy
c. lack of cooperation between the Senate and the House of Representatives
d. being unsure about the accuracy of international business reports
b. being unsure about how firms and consumers will respond to changes in monetary policy
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Using real GDP on the horizontal axis instead of real disposable income implies that a marginal propensity to consume 0.75 generates for every additional $100 of real GDP
A) $25 of additional saving. B) $56.25 of additional consumption spending. C) $25 of additional saving and taxes. D) $75 of additional real disposable income.
Real GDP measures the value of goods and services produced in a given year using
A) base year prices. B) prices of that same year. C) future prices. D) no prices. E) government approved prices.
Economic rent applies to
A) land only and nothing else. B) real property only. C) all resources. D) any resource in fixed supply.
Diseconomies of scale are also known as
a. Increasing returns to scale b. Decreasing returns to scale c. Constant returns to scale d. None of the above