Advocates of active stabilization policies, in defense of their views, argue that
a. stabilization is less necessary than is commonly advocated by monetarists.
b. discretionary policy in not necessary because automatic stabilizers are sufficient.
c. perfect stabilization is not possible, but moderate improvements in economic performance are possible, such as the response to the events of September 11, 2001.
d. All of the above are correct.
c
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The classical economists believed that if the quantity of money doubled
A) output would double. B) prices would fall. C) prices would double. D) prices would remain constant.
The production possibilities frontier illustrates
A. the constant rate of technological progress. B. the fundamental concept of scarcity. C. the rapid growth of the U.S. economy. D. that guns always trade for butter.
The consumption function becomes steeper as the income tax rate decreases because a decrease in the income tax rate: a. increases the disposable income available to the consumer. b. decreases the disposable income available to the consumer. c. increases the marginal propensity to save
d. increases the wealth of the consumer.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The best point for society would be
A. either Point B or Point C, as the total amount being produced at either of these points is approximately the same. B. at any of the labeled points, as all of the points represent an efficient allocation of resources. C. Point C, as at this point there are approximately equal amounts of LCD and OLED televisions being produced. D. indeterminate from this information, as we don't have any information about the society's desires.