According to the classical economists, if there is a recession, the government should ________.
Fill in the blank(s) with the appropriate word(s).
do nothing
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In 1943-1945
A. there was substantial unemployment in the U.S. B. there was substantial excess plant and equipment in the U.S. C. the U.S. had not yet completed its recovery from the depression. D. the U.S. was temporarily operating at a point beyond the production possibilities frontier.
According to the rule of 70, a nation that has an economic growth rate of 5 percent will double its output in ______ years.
a. 14 b. 35 c. 3.5 d. 7
The principle of comparative advantage suggests that governments should pursue free trade because it ______.
a. equitably distributes human capital worldwide b. enables countries to grow their economies through specialization c. prevents poor countries from pursuing technological advances d. reduces pressure on the economies of countries that have few natural resources
The dire predictions about the underfunded nature of Social Security, Medicare, and state and local pensions could be wrong because
A. interest rates may turn out to be higher in the future. B. unemployment rates may turn out to be higher than they are currently predicted to be. C. taxable incomes may turn out to be lower than they are currently predicted to be. D. benefits could be curtailed from what they are currently predicted to be.