To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change.
B. increase.
C. decrease.
D. either increase or decrease depending on the relative shifts of AD and AS.
Answer: C
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Tariff protection
a. encourages the optimum use of scarce resources. b. has no impact on use of scarce resources. c. prevents the optimum use of scarce resources. d. eliminates the scarcity of resources.
What was the primary goal of the proponents of the Patient Protection and Affordable Care Act?
A. Improve the quality of care by reducing medical malpractice. B. Reduce health care costs in the United States by 50 percent. C. Make all U.S. health care publically (government) provided. D. Extend health insurance coverage to all Americans.
In the United States, unemployment rose in all of the recessions that have occurred since the 1970s.
Answer the following statement true (T) or false (F)
There is a high correlation between the number of automobiles on the road and the amount of carbon emissions in the atmosphere. This statement is best described as
A. an implication of an efficient market. B. a normative statement. C. a marginal statement. D. a positive statement.