Which of the following had the greatest impact in pulling the U.S. economy out of the Great Depression?
a. The economy's natural tendency to contract toward potential output
b. The federal government's aggressive policy of tax cuts
c. The federal government's aggressive policy of monetary stimuli
d. A precipitous drop in aggregate demand
e. Increased spending during World War II
e
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The proper short-run goal of macroeconomic policymakers is to
A) amplify the business cycle. B) dampen the business cycle. C) promote high economic growth. D) maintain low economic growth.
In the (consumption,leisure) space, indifference curves as we have assumed them have the property of presenting the highest levels of satisfaction
A) in the north-east corner. B) in the south-east corner. C) in the north-west corner. D) in the south-west corner.
Use the following statements to answer this question: I. The income-consumption curve for perfect complements is a straight line. II. The price-consumption curve for perfect complements is a straight line
A) I and II are true. B) I is true and II is false. C) II is true and I is false. D) I and II are false.
If self-correction causes prices to fall less than nominal wages, both output and real wages will decrease
a. True b. False Indicate whether the statement is true or false