In the 1960s, government policy makers believed that they could:
a. stabilize the economy by letting the market system solve all problems.
b. reduce unemployment by running federal budget surpluses
c. eliminate government's role in stabilization policy.
d. use changes in the money supply to virtually eliminate business cycles.
e. use taxation and government spending to fine-tune the economy.
e
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Which of the following would NOT cause the demand curve for bonds to shift?
A) a change in wealth B) a change in the price of bonds C) a change in the liquidity of bonds D) a change in expected inflation
At the start of the Civil War, the population in the U.S. was about half that of the United Kingdom
Indicate whether the statement is true or false
The ability to produce an item at a lower opportunity cost compared with other producers is known as
A) competitive dominance. B) productive dominance. C) comparative advantage. D) absolute advantage.
Whenever marginal cost is below average cost, average cost must fall as output increases
a. True b. False