Which one of the following is an area of continued disagreement among modern macroeconomists with regard to the use of fiscal policy?
What will be an ideal response?
Budget deficits are a highly effective tool with which to combat a severe recession.
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Barter is
a. illegal in the United States b. an efficient system of exchange c. most useful when there is much specialization and international trade d. only possible if money is used as a medium of exchange e. the direct exchange of goods, without the use of money
Tradeable effluent markets
a. exist only in the United States b. are being used only for point to point trades c. are in use in the United States, Canada, and Australia d. have resulted in consistently high rates of trading activity
Which of the following is an aggregate?
A) the number of shoes in one man's closet B) the bushels of apples one farmer sells C) the price of a particular textbook D) the total production of all goods and services
The doubling of a firm's feedlot capacity which results in a doubling of production is characteristic of
A) A shift in the iso-revenue line. B) Increasing returns to scale. C) Constant returns to scale. D) A shift in the iso-cost line.