In the long run, fiscal policy influences
a. saving, investment, and growth; in the short run, fiscal policy primarily influences technology and the production function.
b. saving, investment, and growth; in the short run, fiscal policy primarily influences the aggregate demand for goods and services.
c. technology and the production function; in the short run, fiscal policy primarily influences saving, investment, and growth.
d. the aggregate demand for goods and services; in the short run, fiscal policy primarily influences technology and the production function.
b
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When talking about demand, price elasticity refers to the
a. price flexibility in response to demand changes. b. adaptability of suppliers to price changes. c. responsiveness of buyers to price changes. d. ability to stretch one’s budget by making wise choices.
During the housing market and financial crises of 2007 and 2008, the Fed increased the volume of discount loans in an attempt to
A) reassure financial markets and promote financial market stability. B) stabilize prices and reduce the growing inflation rate. C) eliminate structural unemployment to lower the unemployment rate. D) attract foreign investment and stabilize interest rates.
Market power and market concentration
A) are directly related. B) are indirectly related. C) are inversely related. D) are not related.
All competitive firms earn zero economic profit in both the short run and the long run
a. True b. False Indicate whether the statement is true or false