An economist who would most likely use active policymaking would support which of the following conclusions?
A. Supply shocks explain most business cycles.
B. Price flexibility is common in most markets.
C. Pure competition is not typical in most markets.
D. Demand shocks have little or no short-run effects on real Gross Domestic Product (GDP) and unemployment.
Answer: C
You might also like to view...
Both the unionization and concentration rates are measures of market power.
Answer the following statement true (T) or false (F)
What happens when the price decreases in the case of a product that has elastic supply?
(A) Existing producers expand, and new producers enter the market. (B) Some producers produce less, and others drop out of the market. (C) New firms enter the market as older ones drop out. (D) Existing firms continue their usual output, but they earn less.
In the U.S., taxes on capital gains are computed using
a. nominal gains. This is one way by which higher inflation discourages saving.
b. nominal gains. This is one way by which higher inflation encourages saving.
c. real gains. This is one way by which higher inflation discourages saving.
d. real gains. This is one way by which higher inflation encourages saving.
Which of the following would we expect to have the highest poverty rate?
A. White households headed by males. B. Elderly white households. C. White households headed by females. D. African-American households headed by females.