A disadvantage of functional finance is that it:
a. does not focus on producing the potential level of output in an economy
b. increases the level of unemployment during recessions.
c. allows chronic deficits that magnify into national debt, allowing it to reach an alarming level.
d. requires that the budget is balanced even during times of war.
e. magnifies fluctuations in the business cycle.
c
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All of the following are shown on a firm's income statement except
A) revenues B) rate of return for investors C) costs D) profits
The main determinant of how quickly expected inflation adjusts to changes in monetary policy is
A) the slope of the Phillips curve. B) the slope of the short-run aggregate supply curve. C) the credibility of the central bank. D) the degree of indexation in the economy.
The Celler-Kefauver Act of 1950:
a. amended the Sherman Act to outlaw price fixing where the effect is to lessen competition b. created the Interstate Commerce Commission. c. prohibited conglomerate mergers where the effect is to lessen competition. d. prohibited a firm from acquiring the assets of another firm where the effect is to lessen competition.
A 0.5% increase in the price of a particular product causes the quantity demanded of the product to drop to zero. This means that the price elasticity of demand for the product is: a. perfectly elastic
b. unit-elastic. c. perfectly inelastic. d. moderately elastic. e. moderately inelastic.