Which of the following is part of the synthesis view of fiscal policy?
a. During a severe recession, the best policy is a "balanced budget policy."
b. During a recession, higher real interest rates and lower net exports will help direct the economy back to full employment.
c. Since changes in discretionary policy are easy to time, fiscal policy should be altered in response to each minor disturbance.
d. Automatic stabilizers help reduce the fluctuations in aggregate demand and output.
D
You might also like to view...
Which of the following is most closely related to the "fair results" approach to fairness?
A) efficient resource use B) having an equal income distribution C) voluntary exchange D) the command system of allocating resources E) price hikes in a natural disaster
Brokers, in contrast to security dealers
A) hold inventories of securities. B) make their income through commissions. C) make their living on the spread between the bid price and the asked price. D) buy and sell securities at given prices.
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.
When you watch a professional football game, you may see the Nike swoosh on the players' jerseys. When you see people on the street, you may see people wearing Nike T-shirts or Nike shoes. It seems, at times, most everybody sports that swoosh. You are likley to say: "Gosh, Nike must be a monopoly.". But think twice. Is it? To define the market it's in, it would be most helpful if you had
information concerning a. its prices relative to those of other firms producing similar goods, such as Reebok b. the shape of its demand curve c. its cross elasticities of demand with other goods and its market share d. whether or not brand loyalty exists e. whether it advertises or not