Advocates of the public-choice view argue that elected officials
a. will always respond to inflation with expansionary policies but will respond to unemployment with restrictive policies.
b. will actively respond to inflation with restrictive policies but are reluctant to respond to unemployment with expansionary policies.
c. will always respond to both inflation and unemployment with expansionary policies.
d. None of the above
D
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According to real business cycle theory, the primary causes of business cycles are
A) shocks to aggregate demand. B) monetary factors. C) technology shocks. D) waves of self-fulfilling optimism and pessimism.
Wealth is redistributed from creditors to debtors when inflation is
a. high, whether it is expected or not. b. low, whether it is expected or not. c. unexpectedly high. d. unexpectedly low.
Featherbedding is the term for
A) any practice that forces employers to use more labor than they would otherwise. B) training programs initiated by unions to make their less-skilled members more productive. C) the practice of trying to recruit union members among public employees. D) attempts by management to eliminate a union.
The case against advertising includes the fact that
A. it increases competition by decreasing barriers to entry of new firms into an industry. B. it ensures high quality and efficient production. C. it provides consumers with valuable information about product availability, quality, and price. D. firms spend large sums of money to create artificial differences among products.