Policies taken to move the economy closer to potential output
A) must necessarily be contractionary policies. B) are lagging policies or automatic policies.
C) are called stabilization policies. D) must necessarily be expansionary policies.
C
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Which of the following is NOT a difficulty with using a piece-rate contract?
A) measuring output B) eliciting the desired behavior C) gaining worker acceptance D) workers taking too much time to achieve a certain task
The absolute price of a good in dollar terms is the good's:
A. nominal price. B. equilibrium price. C. marginal price. D. market price.
The Board of Governors of the Federal Reserve System is
A. composed of representatives from the country's 12 largest commercial banks. B. composed of seven members who are appointed by the President and approved by the Senate. C. elected by the general public. D. composed of 12 members of the Senate and the U.S. House of Representatives.
A value of the absolute price elasticity of demand equal to 0.25 indicates that
A) a 10% decrease in price leads to a 4% increase in quantity demanded. B) a 10% decrease in price leads to a 25% increase in quantity demanded. C) a 1% decrease in price leads to a 2.5% increase in quantity demanded. D) a 0.25% decrease in price leads to a 1% increase in quantity.