Economists who believe in activist policy making argue that
A) only planned changes in the money supply impact the economy.
B) only increases in the minimum wage levels improve economic well-being.
C) decreases in aggregate demand definitely impact the economy in the short run.
D) decreases in aggregate demand impact the economy only in the short run.
C
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Nominal GDP is output measured in ________ prices while real GDP is output measured in ________ prices
A) current; current B) current; fixed C) fixed; fixed D) fixed; current
All of the following aim to reduce income inequality EXCEPT
A) Social Security payments. B) earned income tax credits. C) regressive taxes. D) food stamp programs.
Which of the following is an example of an efficiency wage?
a. an addition the government makes to some workers' wages in order to reduce poverty b. an equilibrium wage paid to workers who work part time and so are exempt from the minimum wage c. paying higher wages to workers doing dangerous tasks d. an above equilibrium wage paid to workers to reduce shirking
The difference between economies of scale and diseconomies of scale is that economies of scale ______, whereas diseconomies of scale ______.
a. are cost advantages experienced by large companies; are the benefits of remaining a small business b. give the company an advantage over smaller competitors; are problems that come with growth c. are advantages that affect a firm’s production in the short run; are experienced over the long run d. are profits realized when the market price of outputs rises; are losses suffered when prices decline