According to the passive approach, discretionary fiscal or monetary policy can reduce the costs of an unstable economy
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
Which is larger: the present value of $1 two years from now or the present value of $1 one year from now? Explain
What will be an ideal response?
When a country allows trade and becomes an exporter of a good,
a. domestic producers become better off, and domestic consumers become worse off. b. domestic producers become worse off, and domestic consumers become better off. c. domestic producers become better off, but the effect on the well-being of domestic consumers is ambiguous. d. domestic consumers become worse off, but the effect on the well-being of domestic producers is ambiguous.
Suppose the price of natural gas, a typical fuel for heating homes, rises in January in Alaska. Would you expect the price elasticity of demand for natural gas to more inelastic immediately after the price increase or at some point in the future?
Smith and Jones comprise a two-person economy. Their hourly rates of production are shown in the accompanying table. Calculators Per HourComputers Per HourSmith10010Jones1206 Suppose Smith and Jones begin by producing 100 calculators per hour; as Smith and Jones choose to efficiently produce fewer computers and more calculators, ________ should devote more time to calculators because his ________.
A. Jones; opportunity costs are lower B. Smith; absolute advantage is larger C. Jones; absolute advantage is smaller D. Smith; opportunity costs are lower