Those economists who believe that the economy is self-regulating argue that wages are flexible, so they think that the economy can remove itself from a recessionary gap without government intervention
Indicate whether the statement is true or false
True
You might also like to view...
The above figure shows a housing market with a rent ceiling equal to $1,000. In this figure, after taking account of the resources lost in search, what area is equal to the consumer surplus?
A) area A B) area B C) area C D) area D E) area E
In the presence of a negative externality
a. the market solution is efficient, but the market price is too high b. the market price is efficient, but the corresponding quantity is inefficient c. the market solution results in too little output being produced d. the efficient outcome is determined where the marginal social cost and market demand curves intersect e. the efficient outcome is determined where the marginal cost and market supply curves intersect
Jackson's Auto Body calculates that its total fixed costs are $3,000 per month. In a month in which the company repairs 20 cars, it finds that its total costs are $12,000 . From this, we can conclude
a. total monthly cost is $15,000 b. marginal cost is $600 c. average fixed cost is $60 d. average variable cost is $450 e. the costs are too high so the company should shut down
A budget surplus occurs if government spending:
A. Equals tax revenues. B. Is greater than tax revenues. C. Is less than tax revenues. D. Causes tax revenues to increase.