Suppose the government passes laws that require restaurants to disclose the nutritional content of their menu items. This would be an example of a:
A. nudge.
B. flawed assumption.
C. shadow price.
D. push.
Answer: D
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The tax cuts and entitlement program expansions of the 1980s led to such ________ federal deficits in the 1990s that fiscal policy ________ for smoothing-out business cycle fluctuations
A) small, again became the preferred tool B) small, was all but abandoned C) large, again became the preferred tool D) large, was all but abandoned
Which of the following is not an example of a market?
a. A small town has only one seller of electricity. b. In the United States, a sick person cannot legally purchase a kidney. c. In Florida, there are many buyers and sellers of key lime pie. d. The availability of Internet shopping has expanded the clothing choices for buyers who do not live near large cities.
The price system is based on the law of __________________.
Fill in the blank(s) with the appropriate word(s).
The government of Blenova considers two policies. Policy A would shift AD right by 500 units while policy B would shift AD right by 300 units. According to the short-run Phillips curve, policy A will lead
a. to a lower unemployment rate and a lower inflation rate than policy B. b. to a lower unemployment rate and a higher inflation rate than policy B. c. to a higher unemployment rate and lower inflation rate than policy B. d. to a higher unemployment rate and higher inflation rate than policy B.