Answer the following statement(s) true (T) or false (F)
1.Automatic stabilizers can counter a major recession on their own.
2.During typical economic conditions, automatic stabilizers are more likely to help than discretionary expansionary or contractionary fiscal policy.
3.Budget deficits give the government flexibility to deal with crisis situations.
4.The largest budget deficits are usually created during wars.
5.Economists often look at the ratio of national debt to GDP.
1.false
2.true
3.true
4.true
5.true
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Are national forests public goods? Explain.
What will be an ideal response?
Monopolistic competition is characterized by: a. one firm selling several products
b. many firms selling the same product. c. many firms selling slightly different products. d. one firm selling one product.
Which of the following is most important for the achievement of long-term prosperity and strong economic growth?
a. expansionary monetary policy b. expansionary fiscal policy c. price stability d. a balanced federal budget
As you move down an isoquant:
A. production remains technically efficient. B. the marginal rate of substitution does not change. C. more of all inputs must be used to keep output constant. D. production remains economically efficient.