Monetarists believe that the major source of macroeconomic instability lies in
A) the private investment sector and the government sector.
B) the government sector.
C) private corporations and the government sector.
D) export and import sector.
B
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When economists say the supply of a product has decreased, they mean that:
a. the supply curve has shifted to the left. b. the product price has decreased, and as a consequence, suppliers are producing less of the product. c. producers are now willing to sell more of this product at each possible price. d. the supply curve has shifted to the right.
A perfectly competitive firm has no influence over price because: a. its output is insignificant relative to the market as a whole. b. antitrust laws constrain perfectly competitive firms
c. consumers establish the prices of products. d. it is unaware of the demand curve it faces.
When the Fed sells government bonds, the reserves of the banking system
a. increase, so the money supply increases. b. increase, so the money supply decreases. c. decrease, so the money supply increases. d. decrease, so the money supply decreases.
A reduction in the capital gains tax, often advocated by proponents of supply-side economics, is supposed to stimulate increased
A. consumer spending. B. net exports. C. investment spending. D. government spending.