Assume the economy is operating at a real GDP above full-employment real GDP. Classical economists would prescribe which of the following policies?
A. nonintervention
B. active monetary policy
C. contractionary
D. expansionary
Answer: A
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The share of the labor force that was unionized increased from 7.4 percent in 1930 to more than 30 percent in 1955 . During these 25 years, the share of national income allocated to labor (in contrast to capital)
a. increased approximately 10 percent. b. increased 17.6 percent. c. fell 20 percent. d. was virtually unchanged.
The resources that a taxpayer devotes to complying with the tax laws are a type of
a. marginal tax. b. administrative burden. c. deadweight loss. d. Both b and c are correct.
The opportunity cost of holding excess reserves is equal to
A. the federal funds rate. B. the discount rate. C. the federal funds rate minus the discount rate. D. none of these.
If the interest rate is 12%, the current market value of $1 to be delivered in one year is
A. $0.89. B. $0.95. C. $1.00. D. $1.15.