Which of the following policies can be adopted by the Fed in order to stimulate an economy in the short run?
What will be an ideal response?
purchasing U.S. government securities
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The figure above shows the market for brooms. If 800 brooms are produced,
A) consumer surplus is maximized. B) producer surplus is maximized. C) market failure and a deadweight loss occur. D) marginal cost is less than marginal benefit. E) there is no deadweight loss.
A society must make three sorts of decision: what goods to produce, how to produce them, and how to distribute them
a. True b. False Indicate whether the statement is true or false
The economy is in equilibrium, TP = TE. Then, net exports fall. As a result, the __________ curve shifts __________, inventory levels unexpectedly __________, and business firms __________ the quantity of good and services they produce
A) TE; upward; rise; increase B) TP; rightward; rise; decrease C) TE; downward; rise; decrease D) TE; downward; rise; increase E) none of the above
Productive efficiency means producing without:
a. cost. b. wages. c. waste. d. competition.