Which of the following groups believes that the economy can achieve full employment without inflation through tax reductions, lower resource prices, and deregulation?
A. Classical school
B. Keynesian school
C. Supply-side school
D. Rational expectations school
Answer: C
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Refer to the above figure. The top two arrows of the figure refer to the product markets. The bottom arrows refer to the factor markets. Which arrow represents factor services?
A) Arrow A B) Arrow B C) Arrow C D) Arrow D
Briefly explain how a U.S. company that exports to Europe can hedge against exchange rate risk
What will be an ideal response?
Which of the following statements is an example of a positive, as opposed to normative, statement?
a. Americans deserve a cleaner environment. b. Reducing emissions reduces days missed from school due to asthma. c. All Americans are entitled to quality health care. d. Economic policies should focus on improving equality.
Refer to the above diagram. The budget line shift which moves the consumer's equilibrium position from point A to point B suggests:
A) an increase in the quantity of Y demanded. B) a decrease in the quantity of Y demanded. C) a leftward shift in the demand curve for Y . D) a rightward shift in the demand curve for Y .