Which of the following is true with regard to the use of countercyclical fiscal policy as a stabilization tool?
What will be an ideal response?
Successful fiscal policy is difficult to achieve because Congress acts slowly and out ability to predict the future is limited.
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Actual investment spending does not include
A) spending on consumer durable goods. B) spending on new houses. C) spending on new capital equipment. D) changes in inventories.
This table shows individual demand schedules for a market.
According to the table shown, if the price were $0.50, what will total demand by Betty and Barney be?
A. 18
B. 36
C. 75
D. 47
Which of the following is a source of wage stickiness?
1. fixed wage contracts 2. minimum wage laws 3. workers and firms want to avoid complexity of negotiating contracts frequently A. I and III only B. I and II only C. I only D. I, II, and III
Refer to the above table. If the price is $5, the perfectly competitive firm should produce
A. 105 units. B. 106 units. C. 107 units. D. 104 units.