In contrast to the post-World War II period, before 1940 the government
a. actively intervened in the economy for stabilization purposes.
b. used aggregate demand management to avoid recessions.
c. rarely intervened in the economy to influence inflation or unemployment rates.
d. used government ownership to guarantee full employment.
c
You might also like to view...
The marginal cost curve passes through the ________ points of the ________ cost curve and the ________ cost curve
A) minimum; average total; average variable B) minimum; average total; average fixed C) maximum; total cost; total variable D) minimum; average variable; average fixed
If the purchasing power of your savings is increasing over time, we know that:
A. the real rate of interest is positive. B. if the nominal interest rate is zero, inflation must be negative. C. the inflation rate must be less than the nominal rate of interest. D. All of these statements are true.
Which of the following is one of the main reasons why China has recently received large amounts of foreign direct investment?
a. The prospect that multinational firms have of selling to the massive Chinese market b. The lack of environmental standards under the communist government of China c. The prospect of using forced child labor for cheaper production in this country d. The relative strength of the Chinese currency, which makes any investment there worthwhile e. The advanced southeast Asian highway system, which makes transportation extremely efficient
In the long run, what is the most important factor to shift the aggregate supply curve?
a. Input prices b. Output prices c. Productivity growth d. Wage growth