The collection and use of data to test economic theories is called empirical economics.
Answer the following statement true (T) or false (F)
True
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In general, the larger the price elasticity:
a. the smaller the responsiveness of price to changes in quantity. b. the smaller the responsiveness of quantity to changes in price. c. the larger the responsiveness of price to changes in quantity. d. the larger the responsiveness of quantity to changes in price.
Keynesians believe
A) in laissez-faire. B) that equilibrium may exist at less than full employment. C) in the use of fiscal policy to stabilize the economy. D) b and c E) all of the above
The idea of policymaking taking place in response to a predetermined set of rules is referred to as
A. discretionary policymaking. B. passive policymaking. C. Keynesianism. D. active policymaking.
A local business sells its product for $40 each in a competitive price-taker market. At its present rate of output, it's marginal cost is $40, average variable cost is $45, and average total cost is $60 . The business should
a. increase output b. reduce output but not to zero c. maintain the present rate of output d. shut down e. raise the price