Economic analysis suggests that countercyclical macro-policy will
a. be difficult to time properly because of uncertainty about the future direction of the economy.
b. be difficult to implement because we do not know whether monetary policy is transmitted through the interest rate, or whether it affects aggregate demand directly.
c. reduce the natural rate of unemployment when macro-policy is persistently expansionary.
d. help reduce economic instability if, and only if, we are willing to tolerate double-digit inflation.
A
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The 3 key economic questions include all of the following EXCEPT
A) "how do we produce these products?" B) "where should these products be produced?" C) "who consumes the products?" D) "what products do we produce?"
Most college courses have a required textbook. Previously, textbooks were only available through the campus bookstore, but now, these texts can be purchased from online retailers, other bookstores, or students can buy an electronic version of the
text. Because of this, we can predict the price elasticity of demand for textbooks from the campus bookstore is ________. A) increasing B) decreasing C) staying the same D) increasing and then decreasing
Which of the following is an example of a positive statement?
A) Basketball players should not be paid higher salaries than teachers. B) The poverty rate is 14%. C) A high rate of economic growth is good for the country. D) Everyone in the country needs to save money for retirement.
Which of the following types of firm most closely fits the description of a competitive firm?
a. new car manufacturers: General Motors, Ford, Chrysler, Toyota, etc. b. local grocery stores c. corn farmers d. the local electric utility