A rapid and decisive reduction in the rate of growth of the money supply for the purpose of disinflation is called
A. a cold shower policy.
B. gradualism.
C. a salt water policy.
D. a cold turkey policy.
Answer: D
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The supply-side economists expect that a cut in the marginal income tax rate, with lost revenues made up by a cut in government spending, would
a. increase output. b. decrease output. c. leave output unchanged. d. affect output but the direction of the effect is uncertain.
When the wages paid to government economists increase, the labor supply curve for academic economists
a. shifts to the left. b. shifts to the right. c. will become backward-sloping. d. will not change.
Last year, Jane spent all of her income to purchase 200 units of corn at $5 per unit. This year, she spent all of her income to purchase 180 units of corn at $6 per unit
a. Jane's nominal income and real income decreased this year. b. Jane's nominal income decreased this year, but her real income increased. c. Jane's nominal income and real income increased this year. d. Jane's nominal income increased this year, but her real income decreased.
Australia is a net exporter of wool, free trade will benefit the ________.
A. rich citizens of the Australia B. poor citizens of the Australia C. domestic consumers D. domestic producers