Since the 1960s, macroeconomists have become more aware
a. that increases in government expenditures are more effective than tax reductions as a source of economic stimulus.
b. that persistent inflation will reduce the unemployment rate.
c. of both the potential and the limitations of fiscal and monetary policy as stabilization tools.
d. of the fact that fiscal policy is more potent than monetary policy.
C
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At an interest rate of 4 percent, what would be the present value of receiving $4,000 four years from now?
A) $3,420 B) $3,637 C) $3,704 D) $3,847
Using the data in the table above, if the price of a stapler is $8, then there is ________ of staplers and the quantity of staplers demanded ________ the quantity of staplers supplied
A) a shortage; is greater than B) a surplus; is greater than C) a shortage; is less than D) neither a surplus nor a shortage; equals E) a surplus; is less than
An economist is told that concentration in the cement industry has increased. He can safely conclude that
a. cement production must have fallen in the industry. b. competition in the cement industry has decreased. c. there are fewer cement producers than before. d. All of the above are correct.
Given that tariffs and quotas cost consumers and that they are a grossly inefficient means for creating or preserving jobs , citizens nevertheless allow these policies to exist because
A. the costs of tariffs and quotas are diffused throughout an entire nation, while the benefits are concentrated. B. they know that petitioning the government to do the right thing is futile. C. incentives to organize around the issue of trade policy are asymmetric. D. all of the above. E. A and C only.