The more interest-sensitive is money demand, the
A) more effective is fiscal policy relative to monetary policy.
B) more effective is monetary policy relative to fiscal policy.
C) steeper is the IS curve.
D) steeper is the LM curve.
A
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The natural rate of unemployment includes
A) frictional and cyclical unemployment. B) frictional unemployment and structural unemployment. C) only cyclical unemployment. D) only unemployment due to layoffs and corporate downsizing.
Refer to Figure 7.1. When both players act in their best interests, financially, the size of the economic pie is
A) $350. B) $650. C) $700. D) $900.
In early 1996, Congress passed the "Freedom to Farm Bill.". Following the bill's enactment,
a. farmers found that competition from international agriculture declined. b. farm prices rose steadily for the next 4 years. c. agriculture was completely deregulated, and farmers began to operate without any government subsidies or assistance. d. farm prices fell, leading Congress to authorize emergency payments to farmers in 1998 and 1999.
The supply curve for land is perfectly elastic
a. True b. False Indicate whether the statement is true or false