An implication of the Employment Act of 1946 is that the government should respond to changes in the private economy to stabilize aggregate demand
a. True
b. False
Indicate whether the statement is true or false
True
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What happens to the price of the product and total revenue for a perfectly competitive firm if it doubles the amount of output it supplies in the market?
What will be an ideal response?
Suppose that a price ceiling is imposed because the market equilibrium is perceived to be too high. Which of the following rationing schemes makes no sense?
a. rationing fish to those willing to pay the highest price b. rationing fish by means of a lottery c. rationing fish to the elderly first d. rationing fish on a first-come, first-served basis e. rationing fish according to family size
If a currency is at a forward premium by as much as its interest rate is lower than the interest rate in the other country, covered interest parity holds.
Answer the following statement true (T) or false (F)
According to the research of Christina Romer and David Romer, tax increases implemented to reduce an inherited budget deficit:
A. reduce real output by the same amount as any other tax increase. B. reduce real output by more than other tax increases. C. reduce real output by less than other tax increases. D. increase real output, contrary to what occurs with other tax increases.