When Dr. Goldfinger decides on the companies in which he will invest, a ________ issue is being addressed
A) positive economic B) normative economic
C) microeconomic D) macroeconomic
C
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
What conditions might be required for an import-substitution policy to be effective? What advantages might it bring?
What will be an ideal response?
Equilibrium GDP
a. is not affected by nominal wage adjustments b. represents the level of output at which public welfare is maximized c. in the long run is equal to the average of the short-run GDP equilibria d. is influenced by long-run adjustments in the labor market e. falls if aggregate demand increases
When budget deficits during recessions are covered by budget surpluses during expansions, then it is termed as annually balanced budget
Indicate whether the statement is true or false