Which one of the following is an example of passive policymaking?
A. introducing expansionary monetary policy to combat inflation
B. introducing expansionary fiscal policy to combat a recession
C. following a predetermined monetary policy rule
D. introducing expansionary monetary policy to combat a recession
Answer: C
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As the price of a competitive firm's product rises, the firm's demand for labor also rises
a. True b. False Indicate whether the statement is true or false
Which statement is true of the graph shown? 
A. The shut down point of the firm would be at an output more than Q*. B. The marginal cost curve crosses the AFC curve at the lowest point of the AFC curve. C. The marginal cost curve should not cross the AFC while it is falling. D. If an ATC curve was drawn in the graph it would intersect the MC curve but not any other curve.
Explain the relationship between potential GDP and real GDP in the United States since the early 1960s. You do not need to tell what happened during any specific year; just describe the general relationship
What will be an ideal response?
If spending is NOT responsive to changes in the interest rate, then
A) the Fed is "impotent." B) tax policy is "impotent." C) fiscal policy is "impotent." D) the Fed is "potent."